The Economic Times, October 20 - Hong Kong stocks resumed trading and continued to slide, with the Hang Seng Index breaking below its 10-day moving average (around 25,326) right at the open, losing the 24,000 level. Semiconductor stocks extended losses, while HSBC (00005), tech and mainland bank sectors all declined. The decline deepened in the afternoon session. The Hang Seng Index closed at 23,867, down 319 points or 1.3%, with an intraday low of 23,846—the lowest since October 8—on turnover of approximately HK$190.5 billion on the main board. The Hang Seng China Enterprises Index closed at 8,030, down 97 points or 1.2%. The Hang Seng Tech Index closed at 4,045, down 62 points or 1.5%.
Tech stocks were under pressure. Alibaba (09988) and Tencent (00700) accounted for over a hundred points of the HSI's decline. The former fell 3.58% to HK$104.90, nearing the psychological HK$100 level, while the latter dropped 1.77% to HK$410.40. Baidu (09888) declined 1.07% to HK$78.60, Kuaishou (01024) fell 2.05% to HK$28.70, while Meituan (03690) reversed to rise 0.53% to HK$76.10.
Ongoing fallout from the UK's announcement of higher bank taxes, coupled with market concerns over European instability triggered by unrest in France, dragged down HSBC (00005), which fell 3.34% to HK$144.70. Standard Chartered (02888) plunged 4.29% to HK$214.00.
Mainland China's intensified collection of offshore trust income taxes, with Thursday as the deadline, has led analysts to believe that founders of six listed companies—including Pop Mart, NetEase (09999), Pinduoduo (US.PDD), and China Hongqiao (01378)—may need to pay back taxes, potentially leading to share disposals similar to what Zhang Yong and his wife did at Haidilao (06862). Affected by the news, Pop Mart fell 4.08% on heavy volume to HK$136.40, China Hongqiao dropped 3.46% to HK$18.96, and NetEase declined 1.26% to HK$195.20.
China's third-quarter GDP growth of 4.5% met the lower end of the official target range, yet all four major mainland banks declined. ICBC (01398) fell 1.32% to HK$7.49, CCB (00939) dropped 0.86% to HK$9.78, BOC (03988) declined 0.49% to HK$6.11, and ABC (01288) fell 0.45% to HK$6.71. On the policy front, the People's Bank of China plans to shift its policy interest rate benchmark from the 7-day repo rate to the overnight repo rate.
Recent data from IDC and Omdia show that Lenovo maintained its global shipment lead in the third quarter with 14.9 million units, though this represented a 22.6% year-on-year decline. Lenovo shares fell 7.56% for the day to HK$25.94.
SMIC (00981) declined 2.29% to HK$51.20, while Hua Hong Semiconductor (01347) fell 2.13% to HK$73.35. Among peers, Dongshan Precision (02384), which launched its IPO today and secured cornerstone investments from 20 institutions including Morgan Asset Management, saw Jian Tao Circuit Board (01888) rise 0.86% to HK$39.82, and Shenghong Technology (02476) climb 3.57% to HK$156.50.
Biotech stocks moved against the market. Hansoh Pharmaceutical (03692), which received significant overseas buying, led the blue chips with an 8.32% gain to close at HK$34.38. WuXi Biologics (02269) rose 3.84% to HK$50.05, Sino Biopharm (01177) gained 2.86% to HK$5.40, and CSPC Pharmaceutical Group (01093) advanced 2.53% to HK$8.92.
CMOC (03993) fell 6.64% to HK$13.64; Sunny Optical (02382) rose 4.51% to HK$60.30.
The top three most actively traded stocks on the HSI, H-share index, and Tech index were Tencent, Alibaba, and Lenovo Group. (ey)
Tech stocks were under pressure. Alibaba (09988) and Tencent (00700) accounted for over a hundred points of the HSI's decline. The former fell 3.58% to HK$104.90, nearing the psychological HK$100 level, while the latter dropped 1.77% to HK$410.40. Baidu (09888) declined 1.07% to HK$78.60, Kuaishou (01024) fell 2.05% to HK$28.70, while Meituan (03690) reversed to rise 0.53% to HK$76.10.
Ongoing fallout from the UK's announcement of higher bank taxes, coupled with market concerns over European instability triggered by unrest in France, dragged down HSBC (00005), which fell 3.34% to HK$144.70. Standard Chartered (02888) plunged 4.29% to HK$214.00.
Mainland China's intensified collection of offshore trust income taxes, with Thursday as the deadline, has led analysts to believe that founders of six listed companies—including Pop Mart, NetEase (09999), Pinduoduo (US.PDD), and China Hongqiao (01378)—may need to pay back taxes, potentially leading to share disposals similar to what Zhang Yong and his wife did at Haidilao (06862). Affected by the news, Pop Mart fell 4.08% on heavy volume to HK$136.40, China Hongqiao dropped 3.46% to HK$18.96, and NetEase declined 1.26% to HK$195.20.
China's third-quarter GDP growth of 4.5% met the lower end of the official target range, yet all four major mainland banks declined. ICBC (01398) fell 1.32% to HK$7.49, CCB (00939) dropped 0.86% to HK$9.78, BOC (03988) declined 0.49% to HK$6.11, and ABC (01288) fell 0.45% to HK$6.71. On the policy front, the People's Bank of China plans to shift its policy interest rate benchmark from the 7-day repo rate to the overnight repo rate.
Recent data from IDC and Omdia show that Lenovo maintained its global shipment lead in the third quarter with 14.9 million units, though this represented a 22.6% year-on-year decline. Lenovo shares fell 7.56% for the day to HK$25.94.
SMIC (00981) declined 2.29% to HK$51.20, while Hua Hong Semiconductor (01347) fell 2.13% to HK$73.35. Among peers, Dongshan Precision (02384), which launched its IPO today and secured cornerstone investments from 20 institutions including Morgan Asset Management, saw Jian Tao Circuit Board (01888) rise 0.86% to HK$39.82, and Shenghong Technology (02476) climb 3.57% to HK$156.50.
Biotech stocks moved against the market. Hansoh Pharmaceutical (03692), which received significant overseas buying, led the blue chips with an 8.32% gain to close at HK$34.38. WuXi Biologics (02269) rose 3.84% to HK$50.05, Sino Biopharm (01177) gained 2.86% to HK$5.40, and CSPC Pharmaceutical Group (01093) advanced 2.53% to HK$8.92.
CMOC (03993) fell 6.64% to HK$13.64; Sunny Optical (02382) rose 4.51% to HK$60.30.
The top three most actively traded stocks on the HSI, H-share index, and Tech index were Tencent, Alibaba, and Lenovo Group. (ey)
