Hang Seng Index drops 2.06% as tech and auto sectors face sharp declines

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21st May 2024 – (Hong Kong) The Hang Seng Index experienced a notable decline, falling by 403.95 points, or 2.06%, to stand at 19,232.27 by midday. The drop reflects broader market uncertainties, impacting key sectors such as technology and automotive, contributing to a volatile environment for investors.

Opening at 19,473 points, the index soon intensified its downward trajectory, reflecting broader concerns across several major industries. The technology sector was particularly hard-hit, with heavyweight stocks like Tencent falling by 2.6% and JD.com by 2.8%. Alibaba and Meituan also saw declines of 0.8% and 2.1%, respectively, while Xiaomi and Kuaishou experienced similar downturns.

Financial stocks further dragged down the market, with HSBC Holdings decreasing by 0.5% and AIA Group plummeting by 4.1%. China Ping An and Hong Kong Exchanges and Clearing were not spared, witnessing declines of 1.1% and 2.3%, respectively.

The automotive sector faced significant challenges, with BYD Co. shares dropping by 3% and Geely Automobile by 2.8%. Nio and XPeng also reported substantial losses, 4.2% and 6.5% respectively. Li Auto was particularly affected, with shares tumbling by 18% following a reported 36% decrease in its quarterly earnings.

Contrasting the general market downturn, Trip.com reported a 27.8% increase in its first-quarter earnings, though its stock value dipped slightly by 0.1%. This indicates a nuanced reaction from investors, who may be weighing broader market trends against individual corporate performances.