Global Markets
Hang Seng drops 2.7% toward its lowest close since June as Hong Kong tech shares slide
Hong Kong's benchmark fell to about 23,008 in Thursday morning trade, with the tech index down 4.3%, as hopes for big Beijing stimulus faded and a regulator's warning hit e-commerce stocks.
HedgeWeekly News Desk ·
Hong Kong stocks fell sharply on Thursday morning. The Hang Seng Index was down 2.7% at 23,007.73 at 10:50 a.m. local time, heading for its lowest close since June 30, the South China Morning Post reported. The Hang Seng Tech Index lost 4.3%. Mainland shares also fell, with the CSI 300 down 1.6% and the Shanghai Composite down 1.4%.
The losses grew through the morning. According to The Standard, the index opened 138 points, or 0.58%, lower at 23,513. Lenovo was the weakest blue chip, down 4%, after reports that it is seeking a US$2 billion loan to refinance an existing loan at a lower cost. Alibaba and JD.com each fell 2% at the open after China's market regulator held a meeting in Beijing urging online platforms to improve quality control in livestream selling, instant retail and social e-commerce. The SCMP linked the wider sell-off to fading hopes for aggressive stimulus, since recent data suggest Beijing's annual growth target is within reach.
Battery maker CATL extended its post-earnings slide. Its Shenzhen shares opened 2.54% lower at 222.11 yuan, a 2026 low, which pushed its A-share market value below 1 trillion yuan for the first time in a year, CnEVHome reported. Its Hong Kong shares were down more than 5% at HK$346.40 by 9:52 a.m. A filing late on Wednesday showed CATL bought back 3.49 million shares for about 800 million yuan, part of a buyback programme of 20 billion to 40 billion yuan.
Why it matters: the selloff hits several risks for China-exposed portfolios at once: platform regulation, weaker hopes for stimulus, and pressure on AI-linked tech. At the mid-morning level, MarketScreener data showed the Hang Seng down 4.38% over five days and 10.23% so far this year, while the Shanghai Composite was extending a 10-week losing run. Risk appetite across Asia was also hurt by reports of US-Israeli plans for renewed strikes on Iran, which lifted oil prices. Investors will watch Beijing for any policy signals, and the close for whether the index breaks below its June lows.