On Tuesday, Hong Kong shares declined primarily due to losses in the tech sector and among automotive companies, as investors took profits amid a lack of significant positive drivers, despite robust gains seen on Wall Street the previous night.
The Hang Seng Index fell 2.1% to reach 23,395.31 points by 11:34 am on Tuesday, with the Hang Seng Tech Index declining 3.4% to stand at 5,543.28. Meanwhile, on the Chinese mainland, the CSI 300 Index and the Shanghai Composite Index each decreased by 0.2% during early trading sessions.
The declines were spearheaded by BYD Electronics International, which operates as a semiconductor division under BYD — the global leader in electric vehicles. BYD Electronics plunged 9.1% to close at HK$42.70. In contrast, BYD dropped 3.4%, finishing at HK$389.60 even after announcing a substantial increase of 73% in their Q4 profits, reaching an all-time high of 15 billion yuan (approximately US$2.1 billion).
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Xiaomi, which produces both smartphones and electric vehicles, dropped 5.2% to trade at HK$50.4 following a larger-than-expected share offering by the China-headquartered tech firm. This move allowed them to raise approximately $5.5 billion from selling 800 million shares priced at HK$53.25 each, taking advantage of their recent stock price rally to support their vehicle manufacturing growth plans.
Peers XPeng fell 7.8% to HK$78.90, Geely Auto decreased 4.9% to HK$16.8, and Li Auto slid 4.1% to HK$100.90.
“Ivan Li, a fund manager at Loyal Wealth Management in Shanghai, stated that anticipating increased market fluctuations, jittery investors opted to liquidate their positions to secure their profits. Nevertheless, most investors are expected to continue investing heavily in Chinese tech and electric vehicle firms,” he explained.
On Tuesday, two firms began trading. Nanshan Aluminium International Holdings dropped 3.4 percent to reach HK$25.7 in Hong Kong, whereas Wintech-Nano Suzhou surged 198.5 percent to hit 27.10 yuan in Shanghai.
In other areas, the markets within the Asia-Pacific region showed varied performance. The Japanese Nikkei increased by 0.6 percent, the Australian S&P/ASX 200 gained 0.3 percent, whereas South Korea’s Kospi dropped by 0.4 percent.
More from The South ChinaMorning Post:
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