The Hang Seng slumped 561 points or 2.4% to close at 23,344 on Tuesday, marking its lowest level in nearly two weeks as broad-based losses erased gains from the previous session.
Hang Seng tumbles to near two-week low
Investors engaged in profit-taking ahead of the quarter-end, as optimism surrounding corporate earnings and Beijing’s stimulus measures had already been factored into prices.
The tech sector led the decline, with the tech index tumbling 3.8%. Xiaomi plunged 6.1% after announcing plans to raise up to $5.27 billion through a share sale, sparking investor concerns about potential dilution. Alibaba dropped nearly 4% following a warning about rising data center costs, while Sunny Optical nosedived 9.9% amid fears of a capacity glut affecting its profitability.
Losses extend beyond technology
Losses extended beyond technology, with consumer and financial stocks also under pressure, despite a broader rally in Asian markets driven by U.S. President Trump’s signals that he might scale back planned tariffs. Investors remained cautious as U.S. futures moved lower on worries about inflation and slowing economic growth.
Electric vehicle (EV) stocks faced sharp declines, mirroring global concerns about demand and supply chain disruptions. BYD Electronic tumbled 9.4%, Geely Auto lost 5.4%, and Li Auto slid 5.0%. Other major laggards included Laopu Old (-9.2%), Pop Mart Intl. (-6.1%), and China State Construction (-3.7%), reflecting a widespread sell-off across different industries.
The downbeat sentiment highlights lingering uncertainties surrounding China’s economic recovery, as investors assess the effectiveness of policy support and external risks, including global monetary tightening and geopolitical tensions.
