Hong Kong Market on rising US-China tensions

Hong Kong share market finished lower for third straight session on Monday, 06 February 2023, as risk aversion selloff continued amid weak corporate earnings outlook and heighten US-China tensions after the U.S. military shot down a suspected surveillance balloon from China.

At closing bell, the benchmark Hang Seng Index declined 438.31 points, or 2.02%, to 21,222.16. The Hang Seng China Enterprises Index was down 197.65 points, or 2.68%, to 7,189.37.

The city's benchmark stock index lost 4.5% last week. Mainland investors sold HK$17.5 billion (US$2 billion) worth of Hong Kong-listed stocks last week, bringing the net outflows this year to about US$500 million.

Over the weekend, U.S. Secretary of State Anthony Blinken postponed his visit to Beijing in a sign of a potential re-escalation of tensions between the United States and China after the U.S. military shot down a suspected surveillance balloon from China. China said it was a stray civilian vessel blown off course, and has vowed to retaliate.

The US has recently moved to limit China's access to advanced semiconductor technology by restricting US companies from exporting their hi-tech goods to mainland China. It has also roped in allies Japan and the Netherlands to restrict the sale of advanced equipment.

Among blue chips, Alibaba Group lost 3% to HK$102.90, and Tencent dropped 2.5% to HK$375.20. Baidu tumbled 2.9% to HK$140.60, and JD.com slumped 3.9% to HK$221.80. Developer Country Garden slid 3.6% to HK$2.70. Macau casino operator Sands China lost 2.6% to HK$28.10.

Powered by Capital Market - Live News