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Tencent drags Hang Seng Index down as it plummets to six-week low amid souring US-China relations, Apple suppliers slammed

Tencent Holdings, Apple suppliers and other technology companies tumbling.” data-reactid=”12″>Hong Kong’s stocks dropped for a third straight trading day, as concern about worsening China-US ties sent Tencent Holdings, Apple suppliers and other technology companies tumbling.

The Hang Seng Index retreated 0.6 per cent, or 154.19 points, to 24,377.43 at Monday’s close. It follows a fall of 1.6 per cent – the biggest loss in two weeks – on Friday, after US President Donald Trump ratcheted up his attack on Chinese technology companies by signing an order that will ban the use of Tencent’s social-media app WeChat in 45 days.

A host of companies supplying parts to Apple fell in tandem after a star analyst said iPhone shipments could shrink by 25 to 30 per cent as a consequence.” data-reactid=”14″>Tencent, which has the biggest representation on the city’s benchmark with an almost 12 per cent weighting, slid to a six-week low, extending last week’s loss. A host of companies supplying parts to Apple fell in tandem after a star analyst said iPhone shipments could shrink by 25 to 30 per cent as a consequence.

had been arrested for allegedly breaking Hong Kong’s new security law. They fell by as much as 17 per cent and jumped 183 per cent to 25.5 Hong Kong cents at the close on possible speculation that the company will become a target for back-door listings.” data-reactid=”19″>Shares of Next Digital saw wild swings after reports Jimmy Lai Chee-ying, the owner of the publisher of Apple Daily, had been arrested for allegedly breaking Hong Kong’s new security law. They fell by as much as 17 per cent and jumped 183 per cent to 25.5 Hong Kong cents at the close on possible speculation that the company will become a target for back-door listings.

“As the tension between the two powerful nations escalates, the market remains jittery,” said Hong Hao, managing director at Bocom International Holdings in Hong Kong. “Chinese stocks will continue to face strong resistance from a trading perspective amid headline risks.”

The mainland’s Shanghai Composite Index was choppy in morning trading before closing 0.8 per cent higher at 3,379.25, as traders await key July economic data that is due later this week.

Tencent fell 4.8 per cent to HK$502, extending a 5 per cent loss on Friday that erased HK$268 billion (US$34.6 billion) in market cap.

Suppliers of Apple also fell hard on concern a US ban of WeChat will prompt the Chinese to switch from iPhones to other brands of smartphone. AAC Technologies Holdings slid 5.6 per cent to HK$57.80 and Sunny Optical Technology Group shed 2.8 per cent to HK$140.70.

Ant’s blockbuster dual listing helps Hong Kong, Shanghai close in on Nasdaq” data-reactid=”24″>Ant’s blockbuster dual listing helps Hong Kong, Shanghai close in on Nasdaq

Lai was detained at his residence on Monday on suspicion of colluding with a foreign country, uttering seditious words and plotting a conspiracy to defraud, according to people familiar with the matter. His two sons and two senior executives were also arrested and the police raided his newspaper offices afterwards.” data-reactid=”25″>Next Digital’s Lai was detained at his residence on Monday on suspicion of colluding with a foreign country, uttering seditious words and plotting a conspiracy to defraud, according to people familiar with the matter. His two sons and two senior executives were also arrested and the police raided his newspaper offices afterwards.

In the mainland, the statistics bureau kicked off the release of July economic data with inflation numbers. Consumer inflation accelerated to 2.7 per cent last month, while producers’ prices fell 2.4 per cent, the agency said on Monday morning. Other data including industrial production and retail sales is due on Friday.

South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved.” data-reactid=”27″>This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.

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