Hong Kong stocks tumble as traders shun risks before US election outcome

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Trump was three votes away from taking back the White House at press time; traders assess potential fallouts on global trade, financial markets

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Pedestrians walk past an electronic screen displaying the Hang Seng Index on the US presidential election day in Central. Photo: AP

Aileen Chuang

Published: 10:30am, 6 Nov 2024Updated: 5:23pm, 6 Nov 2024

Hong Kong stocks tumbled as traders shunned riskier assets with Donald Trump in driving seat for a second term in the White House. Investors are concerned about the possible implications on global trade and financial markets. Chinese meme stocks linked to the candidates swung with early results.

The Hang Seng Index dropped 2.2 per cent to 20,538.38 on Wednesday, after rallying 3.4 per cent in three days from Friday. The Tech Index slipped 2.5 per cent. The CSI 300 Index fell 0.5 per cent, while the Shanghai Composite Index dropped 0.1 per cent.

E-commerce platform operator Alibaba Group retreated 4.1 per cent to HK$94.40, while peer JD.com tumbled 4.2 per cent to HK$152. Meituan slumped 2.3 per cent to HK$189.30 and Tencent weakened 1.9 per cent to HK$419.80. China Life Insurance fell 4 per cent to HK$16.40, leading losses among financial services groups.

Limiting losses, biopharmaceutical firm Wuxi AppTec rose 2.6 per cent to HK$55.40, and auto distributor Zhongsheng Holdings advanced 3.4 per cent to HK$12.30. Property investment trust Link Reit climbed 2.4 per cent to HK$38.05 after reporting a higher interim distribution to unit holders.

Stocks in Hong Kong rose as much as 27 per cent since late September, when China unveiled a stimulus blitz to rescue the nation’s stock and property markets. Since the rally peaked on October 7, the Hang Seng Index has lost 9 per cent as investors said more fiscal spending is needed to enhance the recovery.