Hong Kong Hang Seng falls below the 20K mark

Hong Kong share market finished session lower on Thursday, 09 March 2023, amid deepening concern over the outlook for China's technology sector after reports that Netherlands is proposing new rules that would curb exports of so-called immersion DUV lithography machines, which are critical to producing the world's most advanced chips.

The Dutch proposal follows a similar move imposed by the US last year and is largely seen as the result of discussions between the US and its allies to contain China's access to the most advanced technology. The US last week added 28 more Chinese companies to its export blacklist, prompting Beijing to make a stronger push toward self-sufficiency.

Separately, consumer prices in China rose 1% from a year earlier in February, the slowest in a year, the statistics bureau reported on Thursday. Producer prices dropped 1.4%, versus a 0.8% decline in January. While falling inflation could leave room for the central bank to cut rates, such expectations have fallen by the way side after the moderate target of 5% annual economic growth was set by the government at the opening of the National People's Congress on Sunday.

At closing bell, the benchmark Hang Seng Index declined 125.51 points, or 0.63%, to 19,925.74. The Hang Seng China Enterprises Index fell 77.55 points, or 1.15%, to 6,649.63.

Among blue chips, Alibaba Group retreated 1.5% to HK$84.50, and Tencent lost 2.7% to HK$340.20. Meituan tumbled 1.9% to HK$129.40, and chip maker SMIC fell 0.1% to HK$16.48. Tempering losses, e-commerce operator JD.com added 0.6% to HK$179.30 before its earnings while car maker BYD gained 0.7% to HK$219.

Powered by Capital Market - Live News