Hong Kong Market falls to six weeks low

Hong Kong stock market finished session near six-week low on Tuesday, 23 November 2021, as selling by mainland China funds accelerated following poor earnings from technology heavyweight Alibaba Group Holding and Bilibili and continued regulatory concerns related to online companies..

At closing bell, the benchmark Hang Seng Index dropped 1.2%, or 299.76 points, to 24,651.58, the lowest level since 6 October 2021. The Hang Seng China Enterprises Index dropped 1.14%, or 102.11 points, to 8,827.67.

Mainland investors have taken their money off the table, selling HK$9.3 billion worth of Hong Kong stocks so far this month via the Stock Connect link.

Shares of tech companies declined following poor earnings from technology heavyweight Alibaba Group Holding and Bilibili and continued regulatory concerns related to online companies. Alibaba shed more than 3% to trade near its record low after it slashed its forecast for annual revenue growth on increased competition and a regulatory crackdown. Food delivery giant Meituan slumped 3% ahead of its third-quarter earnings results to be released this Friday.

China Evergrande jumped 6.6% and shares of its electric vehicle unit Evergrande New Energy Vehicle Group soared 14.8% after announcement last Friday that it would issue about 900 million shares at HK$3 apiece through a top-up placement.

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