Tech giants drag Hang Seng lower as shareholders dump stocks

Kitco Media
By Reuters
Published:
Updated:
Reuters
SHANGHAI, April 13 (Reuters) - Hong Kong stocks plunged on Tuesday, as major shareholders of Alibaba and Tencent moved to slash their holdings in the two Chinese tech giants, with lingering geopolitical tensions keeping investor sentiment weak. The decline also tracked global stocks that eased overnight, after the market was rattled by minutes from the Federal Reserve's last policy meeting that indicated banking sector stress could tip the economy into a recession. Alibaba plunged as much as 5.2% in early morning trade, as SoftBank Group Corp moved to sell almost all of its remaining shares in the e-commerce giant, the Financial Times reported, citing regulatory filings it had analyzed. Alibaba was the biggest drag weighing down the Hang Seng benchmark . Tencent , meanwhile, extended losses after a 5.2% plunge in the previous session, as Prosus said it may sell more shares in the social media giant. Taiwan said on Wednesday it had successfully urged China to drastically narrow its plan to close air space north of the island, averting wider travel disruption in a period of high tension in the region due to China's military exercises. Embattled property developer Sunac China , one of many Chinese developers that defaulted last year, fell as much as 60% as the stock resumed trade following a suspension of more than a year. Meanwhile, China's stock benchmark , slipped 0.3% in early morning trade as sluggish economic recovery after China dropped the zero-COVID policy failed to cheer investors.



(Reporting by Shanghai Newsroom; Editing by Sonia Cheema)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.