Hong Kong stocks plunged on speculation that foreign investors were dumping Chinese technology stocks amid concerns about earnings and the economic outlook, while a report showed that more hedge funds are abandoning bets on Chinese stocks.
The Hang Seng Index fell 0.8 percent to 17,364.03 at 10:15 a.m. local time, losing a 0.5 percent gain for the week. The Tech Index plunged 2.1 percent, while the Shanghai Composite Index fell 0.3 percent.
E-commerce platform JD.com plunged 11 percent to HK$99.90. U.S. retailer Walmart Inc. is seeking up to $3.74 billion to sell its 144.5 million U.S.-listed shares of the Chinese e-commerce platform operator at a price below market, Bloomberg reported on Wednesday, citing people familiar with the matter.
Other Chinese technology stocks fell in lockstep following the news. Short video platform owner Kuaishou Technology plunged 11 percent to HK$39.50, Alibaba Group Holding lost 1.9 percent to HK$78.85 and smartphone maker Xiaomi lost 2.3 percent to HK$17.28.
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Why investors should expect more market volatility after the recent global equity sell-off
Why investors should expect more market volatility after the recent global equity sell-off
Sunny Optical Technology trimmed losses and rose 5.2 percent to HK$47.80 after its quarterly profit beat estimates.
Other Asian markets also weakened, posting losses overnight after the US stock index ended an eight-day winning streak. Japan’s Nikkei 225 lost 0.8 percent and South Korea’s Kospi slipped 0.3 percent, while Australia’s S&P/ASX 200 fell 0.5 percent.
