Hong Kong stocks hit 5-month low as Alibaba slides while Geely and BYD pace losses in EV makers on China slowdown
- XPeng sinks, dragging other EV peers, after reporting a wider quarterly loss as vehicle delivery suffers under supply-chain disruptions
- Slower car deliveries show another facet of economic slowdown in mainland China, with a looming power crisis set to roil production again
The Hang Seng Index lost 1.2 per cent to 19,268.74 at the close of Wednesday trading, the lowest since March 15. The Tech Index lost 2.8 per cent, while the Shanghai Composite Index slipped 1.9 per cent.
Geely Automobile retreated 4.5 per cent to HK$15.40 while BYD lost 5.2 per cent to HK$258.80 and XPeng tumbled 12 per cent to HK$72.85. Among tech stocks, Alibaba Group Holding retreated 2.4 per cent to HK$86.25 and Meituan weakened 2.7 per cent to HK$164.10.
“It is still early for China’s economy to show signs of strong recovery” following policy measures to counter the pandemic, said Alec Jin, investment director of Asian equities at abrdn in Hong Kong. “So, we expect the market to remain range-bound over the short term.”
Despite cuts in China’s policy and bank lending rates, stocks have failed to respond as a slump in the housing market slump and a looming power crisis knocked confidence at home. The Hang Seng Index has declined about 4 per cent this month, bringing the losses this year to 18 per cent.
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Asia’s longest river, the Yangtze, lowest level in 150 years as China battles heatwaves, drought
Hong Kong-listed companies accounting for one-third of the market capitalisation have reported their latest results through August 19, falling by 16 per cent in the second quarter and 21 per cent on first-half basis, according to data compiled by Goldman Sachs.
