Hang Seng Tumbles 642 Points as Financial and Tech Stocks Lead Broad Selloff
SingTao · 2 SOURCESabout 4 hours ago2 MIN
Summary
Hong Kong equities retreated sharply on Thursday as the market resumed trading following the National Day holiday, with the Hang Seng Index plummeting 642 points or 2.6% to 23,971 in early afternoon trading. The decline was broad-based, hitting both financial and technology sectors, as mainland investors remained sidelined with northbound and southbound Stock Connect channels still closed. The Hang Seng China Enterprises Index dropped 195 points or 2.38% to 8,024, while the Tech Index shed 106 points or 2.49% to 4,147, with market turnover reaching HK$354 billion.
Key Points
- Hang Seng Index opened down 513 points at 24,099 before extending losses to 642 points (2.6%) at 23,971
- Tech stocks broadly lower: Xiaomi fell 4.6%, Alibaba slipped 3.5%, JD.com dropped 3.2%, Meituan fell 3.4%, Tencent down 1.9%, Kuaishou down 4%
- Financial stocks under pressure: HSBC fell 4.8%, AIA dropped 5%, Standard Chartered slipped 5.2%, China Ping An down 2.1%, HKEX down 2%
- JD Health led blue chips with a 6.9% decline, while New World Development gained 4% after reporting results
- US 10-year Treasury yield surged to 5.34%, the highest since 2002, amid Middle East tensions after the US deployed an aircraft carrier and up to 10,000 troops to the region
Why It Matters
The synchronized decline across financial and technology sectors highlights how external factors, including rising US borrowing costs and geopolitical risks in the Middle East, are overshadowing domestic market dynamics. With the Stock Connect channels remaining closed, local institutional investors face limited ammunition to stabilize markets, raising concerns about further downside if global uncertainty persists through the coming weeks.
The synchronized decline across financial and technology sectors highlights how external factors, including rising US borrowing costs and geopolitical risks in the Middle East, are overshadowing domestic market dynamics. With the Stock Connect channels remaining closed, local institutional investors face limited ammunition to stabilize markets, raising concerns about further downside if global uncertainty persists through the coming weeks.