Hong Kong: Market falls 3%; Tech leads losses after new US export controls

Hong Kong share market finished session lower on Monday, 10 October 2022, as risk aversion selloff across the board, with tech stocks leading losses after the Biden administration published a sweeping set of export controls targeting Chinese companies, threatening to worsen trade ties between the world's two largest economies. Meanwhile, signs of fresh COVID outbreaks in the China and weak China's service sector data released over the weekend also weighed on markets.

At closing bell, the benchmark Hang Seng Index declined 523.39 points, or 2.95%, to 17,216.66. The Hang Seng China Enterprises Index was down 193.94 points, or 3.19%, to 5,880.71.

Chinese chip stocks listed in the city plunged after the US stepped up export controls on sales of semiconductors, prompting concerns about the prospects for Beijing's technology ambitions.The Biden administration introduced export controls Friday that will limit sales of semiconductors made using US technology unless the sellers have an export license. It also added 31 Chinese companies to its "unverified list". Semiconductor Manufacturing International Corp, China's biggest chipmaker, fell 3.95%, while Hua Hong Semiconductor slumped 9.40%. Shanghai Fudan Microelectronics lost 20%.

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