Hong Kong stock market opens lower as Trump ratchets up crackdown on Chinese internet firms
Published: Aug 10, 2020 12:25 PM

A snapshot in front of the Stock Exchange of Hong Kong. Photo: CNSPhoto

The Hong Kong Hang Seng Index edged down 0.35 percent by11:50 am on Monday to 24,444.71 points, dragged by Chinese mainland internet and semiconductor companies amid escalating China-US tensions.

Tencent trading in Hong Kong was down 3.32 percent to HK$510 ($65.79) following a drop of 5.76 percent on Friday, with market concerns arising over the prospects of the company’s US business.

US President Donald Trump issued executive orders on Thursday to ban the Chinese social networking apps TikTok and Tencent’s WeChat if they are not sold to American companies within 45 days, citing so-called “national security concerns.”

Alibaba decreased 2.65 percent to HK$242.460 and NetEase dropped 3.39 percent to HK$142.50.

Leading Chinese contract chip maker Semiconductor Manufacturing International Corp (SMIC)’s trading in Hong Kong decreased 5.85 percent to HK$28.15. BYD Electronic Company dropped 9.70 percent to HK$30.25.

Analysts forecast that mainland companies trading in Hong Kong may continue to be impacted this week due to the uncertainties of China-US ties. Tencent is likely to remain in the limelight for other reasons: the company is scheduled to release its financial results for the first half of the year.

Global Times
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