(Bloomberg) — A key gauge of Chinese technology stocks is on course for a record low after concerns about new U.S. sanctions on Chinese chipmakers pushed it into a fifth day of losses.
Hong Kong’s Hang Seng Tech Index fell by as much as 2% before trimming its decline to 1.3% at 11:10 a.m. local time. That still leaves it set for the lowest close since its launch in July last year, with JD.com Inc. and Meituan dropping more than 4% and leading the rout Thursday.
Renewed fallout from tension between Washington and Beijing flared again following a report on Wednesday that the Biden administration is considering imposing tougher sanctions on Semiconductor Manufacturing International Corp., China’s largest chipmaker.
This came on the heels of the U.S. securities watchdog announcing rules that may force Chinese companies listed in the country — many of which are technology firms — to delist.
In the broader market, the Hang Seng Index lost as much as 1.1% to head for its lowest close since May 2020. The Hang Seng China Enterprises Index slid as much as 1.4% to its lowest since May 2016.
Meanwhile, shares of Chinese companies listed in the U.S. fell for a third consecutive day on Wednesday to the lowest since March 2020.
“Hong Kong technology shares are following U.S. peers’ declines in general,” said Steven Leung, UOB Kay Hian (Hong Kong) Ltd. executive director. “People are still worried about the U.S.-China tensions, uncertain regulations over those companies. In general, capital continues to flow out of this sector.”
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