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The Hong Kong market crashed as the Chinese Government meted out fines on internet giants.
The Hong Kong market opened lower on Thursday. Hang Seng index opened down 57 points, H share index down 55 points and technology index 55 points. Technology stocks led the fall. A...
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The Hong Kong market crashed as the Chinese Government meted out fines on internet giants.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The Hong Kong market opened lower on Thursday. Hang Seng index opened down 57 points, H share index down 55 points and technology index 55 points. Technology stocks led the fall. Alibaba lost 1.75% for 36-point loss. Meituan lost 1.47% for 32-opint loss. Tencent lost 1.55% for 32-point loss. On the contrary, Wuxi Biologics rose 2.6% to lead the gainers for 26-point gain. AIA rose 0.57% for 13-point gain. A shares opened up 0.1%. Shanghai composite index opened up 3 points. The market crashed after opening. The Chinese Government levied fines on internet companies for breaching the law. Technology stocks fell sharply. Meituan lost 6.15% for 136-point loss. Tencent lost 3.3% for 69-point loss. Alibaba lost 2.7% for 50-point loss. Financials followed technology stocks lower. HSBC lost 1% for 20-point loss. AIA lost 2% for 44-point loss. Ping An lost 2.8% for 29-point loss. Oil stocks fell. Petrochina lost 5.1%. CNOOC lost 3.7%. Sinopec lost 2.1%. Haidilao lost 8% to become the top loser. AAC lost 5.2%. Sunny Optical lost 5.2%. Xinyi Solar lost 4.15%. Auto stocks rose. Geely rose 3.74%. BYD rose 1.33%. Yongda and Smoore announced positive profit alert. Both Smoore and Yongda rose 5%. A shares closed the morning down 0.57%. Shanghai composite index closed down 20 points. Hang Seng index fell to a low of 27372, down 588 points. Hang Seng index closed the morning down 559 points, H share index down 241 points and technology index down 226 points. Turnover was $100.4 billion.

The market fell further in the afternoon, as Hang Seng index lost more than 800 points. Technology stocks led the fall. Meituan lost 6.9% for 152-point loss. Tencent lost 4.2% for 84-point loss. Alibaba lost 3.8% for 80-point loss. AIA lost 3.25% for 72-point loss. AAC lost 6.15% and Sunny Optical lost 4.24%. Shipping stocks that have been strong recently succumbed to the selling pressure. Cosco Holdings lost 5.4%. Cosco Development lost 6.3%. OOIL lost 9.8%. However, Sinotrans rose 5.4% after issuing positive profit alert. Haidilao lost 7.2%. Yihai lost 13%. Sports shoes share fell. Anta Sports lost 3.4%. Lining lost 4%. China Dongxiang lost 5%. However, Viva rose 8.7%. Dongyue rose 8.7% against the market. Geely rose 2% but BYD lost 1%. China Aerospace rose 6% against the falling market. New Oriental fell 8.5% on broker downgrade. Koolearn lost 6.4%. A shares closed down 0.79%. Shanghai composite index closed down 28 points. Hang Seng index fell to a low of 27110, down 850 points, and closed down 807 points. H share index closed down 327 points and technology index down 281 points. Turnover was $205.2 billion.

Overnight, overseas markets fell sharply. The new Delta variant Covid sparked a hike in new infections. Economic recovery could be at risk. Stock markets fell. European markets lost about 2%. DAX lost 272 points. CAC lost 120 points and FTSE lost 130 points. In the US, new unemployment claims rose again. Economic recovery seemed to have run out of steam. Dow Jones lost 260 points. S & P lost 37 points and Nasdaq lost 105 points. Hong Kong ADR’s lost 32 points. Night future rose 108 points. We expect the market to fall again today.  
 
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