The Hang Seng Technology Index of Hong Kong stocks fell once more by 7% in early trading on Tuesday (15th).Hang Seng Index The 19,000 mark fell below the 19,000 mark, and Hong Kong stocks plummeted for several days. Experts believe that Hong Kong stocks have been hit by both domestic and foreign negatives recently, including the risk of delisting Chinese stocks, the worsening of the epidemic in Hong Kong and the mainland, and the inflation risk caused by the Russian-Ukrainian war.
The Hang Seng Technology Index fell 7% in early trade on Tuesday.Hang Seng Indextumbled 3.07%, falling below the 19,000-point barrier, Alibaba (09988-HK), Tencent Holdings (00700-HK) shares fell more than 8%, and Meituan (03690-HK) , Kuaishou (01024-HK) shares also tumbled more than 7%.
The Hang Seng Technology Index closed down 11.03% on Monday, the largest drop in history.Hang Seng IndexIt tumbled 4.97% and fell below the 20,000-point mark, the only one seen since 2016.
U.S. stocks and Chinese concept stocks also plummeted on Monday, and there is no sign of stopping the decline. Pinduoduo (PDD-US) shares plummeted 20%, Alibaba, JD.com, Weilai (09866-HK) ,ideal (LI-US) fell by more than 10%.
Recently, both Chinese concept stocks listed in the United States and Hong Kong stock technology groups have experienced selling pressure. At present, the large-scale Chinese concept technology stocks listed in the United States have generally been listed on the Hong Kong stock market for the second time, which has promoted the strengthening of the linkage between Hong Kong stocks and Chinese concept stocks.
A few days ago, the U.S. Securities and Exchange Commission (SEC) announced the “scheduled delisting list”, which triggered the selling pressure of Hong Kong stocks.
Zheng Jian, assistant manager of Chuangjin Hexin Fund, said, “Almost all of the heavyweight stocks in China concept stocks are listed in the United States and Hong Kong stocks. Therefore, when American investors sell ADR shares of Chinese concept stocks and the stock price falls, the amount of Hong Kong stocks listed in the two places will be reduced. It was also dragged down, and the Hong Kong share of dual-listed stocks fell more than the heavyweights listed only in Hong Kong.”
The Hang Seng Technology Index itself is a highly volatile index, as the number of heavyweight stocks is small, and 86% of the weight is concentrated in the top 15 or so targets. Therefore, the stock price fluctuations of several companies can easily cause the index to fluctuate.
Not only the technology group, but Hong Kong stocks have been in a state of “internal and external attack” recently. Invesco Great Wall Fund Company said that the daily newly confirmed cases in Hong Kong are still high, and the spread of the epidemic in China has also made investors more worried regarding the epidemic. At the same time, under the conflict between Russia and Ukraine, global inflation expectations have risen once more, and risk assets have also been under pressure.
Invesco Great Wall believes that in the short term, Hong Kong stocks may still be in a volatile and consolidating pattern before the dust settles; in the medium and long term, the current valuation level of Hong Kong stocks is already at a low level. China’s economy recovers steadily, overseas and A-share markets gradually digest uncertainty, and Hong Kong stocks are expected to gradually recover.
