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Hong Kong stocks slip as Alibaba, Tencent and Anta lead losses amid new China lockdowns, Fed tightening focus
- Alibaba and Tencent retreated by more than 2 per cent after Hainan locked down Sanya resort city, while China Tourism group slid in Shanghai
- A stronger than expected US job report for July kept appetite in rein amid concerns about Fed tightening bias
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Hong Kong stocks fell from a one-week high on concerns new lockdowns in mainland Chinese cities will disrupt efforts to reboot the economy, adding to a widening US-China rift over Taiwan-related issues. A strong job report also put policy tightening in the US back in focus.
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The Hang Seng Index retreated 0.8 per cent to 20,045.77 at the close of Monday trading. The Tech Index lost 1.8 per cent, while the Shanghai Composite Index added 0.3 per cent.
Alibaba Group Holding slumped 4.4 per cent to HK$88.80 while Tencent Holdings lost 2.7 per cent to HK$299.40 and Meituan dropped 2.1 per cent to HK$179.60. Anta Sports weakened 2.7 per cent to HK$85.35 and Country Garden tumbled 6.6 per cent to HK$2.53.
“The recent Covid-19 rebound in some provinces or cities, especially in Hainan, might slow down economic growth,” analysts at KGI Securities wrote in a note on Monday. “Together with intensified geopolitical pressure, Hong Kong stocks are expected to consolidate today.”
China’s southern resort island of Hainan has placed cities in lockdown over the weekend, including its capital Haikou and tourist town Sanya, according to state broadcaster CCTV. The latest curbs followed a quasi-lockdown in Yiwu, a commercial hub in eastern Zhejiang province.
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