Saturday, November 27, 2021
Martin Hennecke

Tech shares lead slump as HSI feels heat from US
<p>Hong Kong shares slumped amid tense Sino-US relations, with tech shares leading the drop, as the benchmark Hang Seng Index fell by 508.55 points, or 2.06 percent, to 24,158 and night futures fell another 31 points as of 9pm.</p><p>The ATM trio of Alibaba (9988), Tencent (0700) and Meituan Dianping (3690) retreated after hitting new highs on Wednesday. Alibaba dived 4.30 percent at HK$284.8, the worst performer among blue chips, amid the news that the US State Department was planning to add Ant Group to a blacklist.</p><p>Tencent fell 3.75 percent to HK$552, and Meituan Dianping went down 4.81 percent to HK$265.</p><p>Banks and insurers were also under pressure as the State Department warned international financial institutions of sanctions if they do business with 10 Hong Kong and mainland officials deemed to have undermined Hong Kong&#39;s autonomy. AIA (1299) sank 3.69 percent to HK$78.35, and HSBC (0005) decreased 1.97 percent to HK$29.9.</p><p>The top gainer was Chinese clothing manufacturer Shenzhou International (2313), which inched up 0.07 percent to HK$136.6.</p><p>Chinese wind turbine manufacturer Xinjiang Goldwind Science &amp; Technology (2208) extended gains on news that China&#39;s wind power investment reached 80 billion yuan (HK$92.11 billion) in the first eight months. The stock jumped 11.06 percent to HK$10.24.</p><p>In mainland China, the Shanghai Stock Exchange Composite Index edged down 8.6 points, or 0.26 percent, to 3,332. The Shenzhen Stock Exchange Composite Index fell 16.01 points, or 0.7 percent, to 2,274.</p><p>In the currency market, the onshore yuan strengthened 70 basis points to 6.73 per US dollar, hitting a one-week high.</p><p>In the United States, S&amp;P 500 futures were down 1.2 percent while Nasdaq 100 Index were 1.6 percent lower as of 9pm.</p><p>&quot;Expectations are highly uncertain and will likely remain so with the upcoming US election, a key Brexit decision looming and new EU tariffs in the pipeline,&quot; said Geir Lode, head of international global equities at Federated Hermes.</p><p>On Monday, Fitch Ratings said it will monitor the US presidential election &quot;for any departure from its base case that underpins the United States&#39; AAA sovereign rating.&quot;</p><p>&quot;Strong governance is essential to AAA sovereigns, which are characterized by well-understood rules and processes for the transfer of power that are broadly accepted and executed. Fitch would view a departure from this principle negatively in considering the US rating.&quot;</p>

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