Alibaba, JD.com, Xiaomi slide in Hong Kong while HSBC and Ping An advance amid calls to split bank’s Asian operations

On May 3, 2022 12

People walk past a display showing the Hang Seng Index in Hong Kong April 22. Photo AFP

Wild swings seen in prices of Chinese tech stocks following a massive rally on Friday amid speculation about an end to sector crackdown
HSBC and Ping An Insurance jump amid reports calling for a break-up of bank’s Asian operations

Hong Kong stocks traded near a two-week high as HSBC and Ping An Insurance paced winners amid calls to break up the lender’s Asian operations. Alibaba Group Holding and JD.com tumbled, providing an early scare as the market reopened after a holiday.

The Hang Seng Index gained 0.1 per cent to 21,114.25 at the local noon trading break, after earlier sliding as much as 2.1 per cent. The Tech Index lost 0.9 per cent, paring an earlier slump of as much as 4.6 per cent amid steep pullback in Alibaba Group. Financial markets in mainland China will remain closed through Wednesday.

HSBC added 1.9 per cent to HK$49.45. Ping An Insurance Group said it supported a debate on the bank’s future amid reports calling for a break-up of the lender’s Asian business. Europe’s biggest lender by assets derives most of its profit from Hong Kong and the Asian region. Ping An added 1.2 per cent to HK$52.

Chinese technology stocks surrendered some of their hefty gains from last week. Alibaba Group Holding crashed as much as 9 per cent before trading 1.6 per cent weaker at HK$100.50. JD.com sank as much as 8.9 per cent before losing 4.2 per cent loss to HK$254.40 at break.

Xiaomi tumbled 3.9 per cent to HK$11.72 after the India’s government accused the smartphone maker of tax violations.

The Hang Seng Index rose 2.2 per cent last week to snap a three-week losing streak after tech stocks staged a massive jump on Friday with Alibaba and Meituan both surging 16 per cent. China was considering halting its year-long crackdown, the Post reported, a clampdown that has erased US$1.7 trillion in market value from Chinese stocks at home and in Hong Kong.

Elsewhere, Shanghai’s government detected 73 new Covid-19 cases in so-called unguarded low-risk areas on Monday, after logging 58 cases on Sunday. The rebound dashed hopes for a “societal zero-Covid” goal that could lead to a reopening of more factories or end a lockdown of 25 million residents in the commercial hub.

HutchMed slumped 18 per cent to HK$20.95. The pharma group failed to win approval for its candidate Surufatinab for tumour treatment, after the US Food and Drug Administration required the firm to conduct more clinical trials.

Hong Kong’s economy probably shrank 1.3 per cent in the first quarter from a year earlier, according to consensus forecasts by economists tracked by Bloomberg. Gross domestic product fell 0.9 per cent from the preceding three months. The government will report the data after trading today.

Source: SCMP