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Tension over the Taiwan Strait led to the market’s crash.
The market opened lower on Tuesday. Hang Seng index opened down 223 points, H share index down 94 points and technology index down 82 points. Meituan lost 2.8% for 33-point loss. A...
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Tension over the Taiwan Strait led to the market’s crash.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The market opened lower on Tuesday. Hang Seng index opened down 223 points, H share index down 94 points and technology index down 82 points. Meituan lost 2.8% for 33-point loss. AIA lost 1.3% for 20-point loss. Wuxi Biologics lost 2.4% for 12-point loss. HK Exchanges lost 1.4% for 11-point loss. Tencent lost 1.47% for 11-point loss. HSBC rose 0.4% for 7-point gain. Country Garden Services lost 5% to become the top loser at opening. Country Garden lost 3.1%. Oil stocks fell on lower oil prices. CNOOC lost 2.4%. Petrochina lost 1.93%. Sinopec lost 1.9%. A shares opened down 40 points. The market fell sharply lower after opening, as tension across the Taiwan Strait intensified. US Congressional Leader Nancy Pelosi intended to visit Taiwan Tuesday night, sparking strong protest from China. Hang Seng index crashed more than 600 points. Hang Seng index fell to a low of 19515, down 651 points. Meituan lost 3.44% for 40-point loss. Alibaba lost 3.5% for 44-point loss. HSBC lost 2.6% for 44-point loss. AIA lost 2.2% for 36-point loss. HK Exchanges lost 4.1$ for 35-point loss. Wuxi Biologics lost 5.5% for 28-point loss. Tencent lost 3.1% for 23-point loss. Xiaomi lost 6.6% for 22-point loss. Mainland developers fell sharply. CG Services lost 9.3%. Country Garden lost 6.5%. R & K loste 5%. Jiayuan lost 5.8%. Lonfor lost 4.7%> A shares closed the morning down 93 points. Hang Seng index closed the morning down 546 points. H share index closed down 202 points and technology index down 167 points. Turnover was $67.6 billion.

The market was little changed in the afternoon. Hang Seng index lost more than 500 points. Alibaba lost 2.8% for 36-point loss. AIA lost 2.2% for 34-point loss. Meiutan lost 2.8% for 33-point loss. HK Exchanges lost 3.3% for 29-point loss. HSBC lost 1.64% for 29-point loss. Wuxi Biologics lost 5.15% for 26-point loss. Tencent lost 3% for 22-point loss. The market rebounded about 100 points in midafternoon. However the gain was short lived. Education shares fell sharply. Wisdom Education lost 6.4%. Tianli Education lost 6.4%. New Oriental lost 6.2%. Pharmaceutical shares fell. Hutchmed lost 8.4%. Mabpharm lost 7.9%. BRII lost 6.96%. Solar energy shares fell sharply. Xinyi Solar lost 4.4%. Xinyi Glass lost 7.1% and Xinyi Energy lost a whopping 18.1%. GCL Technology lost 7.1%. Xintec lost 5.8%. Shipping stocks also fell. OOIL lost 2.8%. Cosco Holding lost 4.9%. The US House Speaker Pelosi insisted on visiting Taiwan over the stern warning and objection by the Chinese Government. Taiwan Strait tension escalated. Stock markets in China, Hong Kong and Taiwan all fell sharply. A shares lost 74 points. Taiex lost 234 points. Hang Seng index closed down 476 points. H share index closed down 174 points and technology index down 129 points. Turnover was $118.1 billion.

Overnight, overseas markets fell. European markets edged lower. DAX lost 30 points. CAC lost 27 points and FTSE lost 4 points. US markets fell for the second straight day. Dow Jones lost 402 points. S & P lost 27 points and Nasdaq lost 20 points. Hong Kong ADR’s lost 16 points. Night future rose 213 points. We expect the market to rebound today.  
 
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