Hong Kong stocks tumble almost 3% as traders extend tech-fuelled rout

Hong Kong: Hong Kong stocks plunged again Tuesday, extending the previous day’s tech-fuelled rout that came after China locked down the tech hub of Shenzhen. Traders are also fretting over possible sanctions if Beijing reacts to Russia’s plea for military help in its Ukraine invasion, which could lead to measures against Chinese firms including possible sanctions. The Hang Seng Index fell 2.99 percent, or 584.41 points, to 18,947.25 at lunch, its lowest level since early 2016. The Shanghai Composite Index dived 2.18 percent, or 70.42 points, to 3,153.11, while the Shenzhen Composite Index on China’s second exchange lost 1.49 percent, or 31.34 points, to 2,078.13. Shares saw a bounce minor bounce in late morning business thanks to bargain-buying and after data out of China suggested the world’s number two economy fared better than expected at the start of the year. However, that was tempered by a spike in unemployment. The Hang Seng Index dived five percent Monday as the Hang Seng Tech Index was pummelled 11 percent after China said it would lock down Shenzhen to contain a Covid outbreak. And while the tech index fell again Tuesday, the selling was light though market heavyweights Alibaba, JD.com and Tencent were still sharply lower. The crises have further rattled Hong Kong investors who have had to contend with China’s regulatory crackdown on the private sector, with once-flying technology companies often in the crosshairs. Chinese firms listed in the United States were battered last week owing to concerns about a crackdown by authorities there. A gauge of Chinese firms listed in New York plunged 11 percent Monday, with ecommerce giants Alibaba and JD.com down around 10 percent. A “material rerating for China tech may need to see a shift in regulatory tone”, Marvin Chen, a strategist at Bloomberg Intelligence, said, adding that interplay between Moscow and Beijing would be closely followed. Meanwhile, Hong Kong’s economy continues to face headwinds from containment measures put in place to fight a surge in Covid cases in the city, with an expected Federal Reserve interest rate hike this week not likely to help matters. Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.