Update | Hong Kong stocks log worst week in 4 months as Tencent leads tech sell-off
Tencent down 3.7 per cent for the week; Sunac China sinks on reports that chairman Sun Hongbin to become new chairman of struggling LeEco
Hong Kong stocks dropped a combined 1.6 per cent for the first week of July, the worst weekly performance in four months, as the tech sector retreated heavily and Chinese internet giant Tencent took a hit after a fierce attack by the Communist Party’s mouthpiece against its “addictive” hit mobile game Honour of Kings.
The Hang Seng Index fell 0.5 per cent, or 124.37 points, to close Friday at 25,340.85. For the week, the index was down 1.6 per cent, the biggest percentage loss since the week that ended March 3.
The Hang Seng China Enterprises Index, which tracks the performance of Hong Kong-listed Chinese companies, declined 0.9 per cent to finish at 10,251.83.
Before this week, the Hang Seng had risen for six months in a row, the longest stretch of monthly gains since 2007.
“The Hang Seng Index has breached the 25,600 level. I think it has potential to seek even lower levels in the near term,” said Linus Yip, chief strategist for First Shanghai Securities.
“Global central banks have shown intentions to tighten monetary policy. Geopolitical risks also seem to be on the rise. These are risk factors to the market.”
