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The market crashed as Tencent would dispose of RMB100 billion in investment.
The Hong Kong market continued to fall on Thursday. Hang Seng index opened down 192 points, H share index down 60 points and technology index down 41 points. Technology stocks led ...
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The market crashed as Tencent would dispose of RMB100 billion in investment.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The Hong Kong market continued to fall on Thursday. Hang Seng index opened down 192 points, H share index down 60 points and technology index down 41 points. Technology stocks led the fall. Tencent indicated it would sell of RMB100 billion of its investment in technology stocks. Meituan lost 2.53% for 38-point loss. AIA lost 1.7% for 27-point loss. Wuxi Biologics lost 2.94% to lead the losers for 13-point loss. BYD lost 0.41%. The market fell further after opening. Hang Seng index lost more than 250 points. OOIL went ex-dividend. Share price fell 6.1%. Zhongcheng continued to fall 3%. BYD lost 3% for 12-point loss. HK Exchanges lost 1.6% for 12-point loss. Haidilao lost 3.23% after soaring 6% on Wednesday. OOIL’s loss widened to 9.4%. Shipping stocks fell. Cosco Holding lost 4.24%. Pacific Basin lost 5.7%. STC lost 4.7%. Consumption stocks fell. Budweiser lost 3.5%. Lining lost 1.4%. Anta Sports lost 1.6%. Nongfu Spring lost 1.8%. Technology stocks that has Tencent as investor fell. Meituan lost 3.74%. Kuaishou lost 1.8%. Chinese Literature lost 1.4%. Hang Seng index fell to a low of 19669, down 285 points. Then the market’s loss narrowed. Alibaba rose 1% for 13-point gain. Tencent rose 1.5% for 20-point gain. A shares closed the morning up 10 points. Hang Seng index closed the morning down 303 points, H share index down 91 points and technology index down 48 points. Turnover was $85.7 billion.

The market’s fall widened in the afternoon, as heavyweights fell further. Meituan lost 5.7% for 87-point loss. Alibaba lost 2.2% for 36-point loss. AIA lost 1.4% for 22-point loss. HSBC lost 1.1% for 18-point loss. BYD lost 4.5% for 17-point loss. OOIL lost 7.8% for 14-point loss. HK Exchanges lost 1.95% for 15-point loss. Wuxi Biologics lost 2.3% for 11-point loss. Mainland developers rose. R & F entered in joint venture with China Merchants Shekou to develop properties in Shenzhen. Share price rose 3.7%. Vanke rose 2.34%. China Overseas Land rose 1.4%. Jiayuan rose 4.2%. Coal miners rose. Yankuang rose 3.7%. China Shenhua rose 1.8%. China Coal rose 2.43%. Yankuang Australia rose 3.5%. The market fell further in late trading, as Hang Seng index lost more than 400 points. Heavyweights fell further. Meituan lost 6.5% for 99-point loss. Alibaba lost 2.54% for 35-point loss. AIA lost 1.25% for 20-point loss. HSBC lost 1.03% for 16-point loss. BYD lost 4.3% for 16-point loss. A shares closed down 17 points. Hang Seng index closed down 357 points. H share index closed down 123 points and technology index down 69 points. Turnover was $105.6 billion.

Overnight, overseas markets were mixed. European markets fell. DAX lost 205 points. CAC lost 91 points and FTSE lost 135 points. US markets were mixed. Dow Jones closed up 146 points after falling 300 points in early trading. S & P closed up 12 points but Nasdaq closed down 31 due to weakness in chip stocks. HK ADR’s lost 74 points but night future rose 24 points. We expect the market to rebound today.  
 
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