Tencent, Xiaomi drag Hong Kong stocks to 6-week low on US-China geopolitical concerns

Name: Trump is back: what’s next for China, Asia and the world? | Talking Post with Yonden Lhatoo
Uploaded: 2025-01-07T02:23:38.000Z
Duration: 40 min 43 s
Description: Trump is back: what’s next for China, Asia and the world? | Talking Post with Yonden Lhatoo

The Department of Defense added Tencent, CATL and dozens of firms as ‘Chinese military companies’ in register, stoking steep losses

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People walking past stock monitors outside a bank branch in Mong Kok, Hong Kong. Photo: Sam Tsang

Yulu Ao

Published: 10:23am, 7 Jan 2025Updated: 5:18pm, 7 Jan 2025

Hong Kong stocks slumped to the lowest level in six weeks amid concerns more US curbs on some of China’s biggest technology companies will heighten geopolitical tensions and roil markets.

The Hang Seng Index retreated 1.2 per cent to 19,447.58 on Tuesday, dragging the benchmark to the level last seen on November 29. The Tech Index slipped 0.9 per cent, while the Shanghai Composite Index added 0.7 per cent. The Nasdaq Golden Dragon Index of US-listed Chinese stocks, declined 1.2 per cent overnight.

WeChat operator Tencent tumbled 7.3 per cent to HK$379.60, the most since October 8 and tracking its 7.8 per cent loss in New York. Biotech firm Wuxi Biologics retreated 2.5 per cent to HK$16.18 and Xiaomi sank 5.9 per cent to HK$34.15. Li Auto fell 1.6 per cent to HK$92.85, leading losses among major electric-vehicle makers.

Contemporary Amperex, China’s biggest EV battery maker known as CATL, fell 2.8 per cent to 249.45 yuan in Shenzhen trading.

“The fear of future tension rises as the move adds uncertainty to other Chinese tech firms,” said Xing Zhaopeng, a senior strategist at Australia & New Zealand Banking Group. “The impact remains [small] because of their limited business exposure to the US.”

40:43

Trump is back: what’s next for China, Asia and the world? | Talking Post with Yonden Lhatoo

The Department of Defense added Tencent and CATL among dozens of “Chinese military companies operating in the US” in the Federal Register, according to a supplementary list published on January 7. Tencent and CATL said their inclusion was a mistake and misunderstanding.