HK stocks end down amid fears of car price war

RTHK

7 days ago

HK stocks end down amid fears of car price war
The Hang Seng Index ended down 0.53 percent for the day at 23,258.31. File photo: AFP
China stocks ended roughly flat on Wednesday as investors remained cautious amid ongoing Sino-US tensions despite a temporary easing in tariff threats announced this month.
In Hong Kong, the benchmark Hang Seng Index shed 123.68 points, or 0.53 percent, to end the day's trading at 23,258.31.
The Hang Seng China Enterprises Index fell 0.31 percent to end at 8,443.87 while the Hang Seng Tech Index fell 0.15 percent to end at 5,174.64.
Tech majors edged down 0.3 percent.
Mystery box maker Pop Mart International saw its shares down 7 percent, its largest one-day decline since April 7.
Shares of Xiaomi rose 0.4 percent after it reported a record first-quarter revenue and profit and said its shift towards higher-end products from smartphones to home appliances was already paying off.
Shares of major electric carmakers extended losses as an intensifying auto industry price war in China stoked fears of a long-anticipated shake-out in the world's largest car market.
BYD shares traded offshore fell 2.7 percent while Li Auto dropped 2.5 percent.
Across the border, mainland-listed stocks closed lower, with the benchmark Shanghai Composite Index down 0.02 percent to 3,339.93.
The Shenzhen Component Index closed 0.26 percent lower at 10,003.27
After a period of market consolidation, Sino-US negotiations are expected to remain in a tug-of-war phase, but with low active capital positioning and investors now seasoned by April's volatility, future disruptions are unlikely to significantly impact market risk appetite, Citic Securities analysts said in a note.
US President Donald Trump has played his cards in trade negotiations, and the path ahead depends on the bargaining power of countries and corporates, but trade policies will not return to the pre-Trump period, Olivier Blanchard, senior fellow at Peterson Institute for International Economics, said at the UBS Asian Investment Conference on Wednesday.
Free trade agreements typically take about one to two years to decide and three years to implement, he said.
The Nikkei ended the day down 1.71 points at 37,722.40, effectively unchanged but snapping a three-day rally.
The broader Topix also finished essentially flat but up 0.02 points at 2,769.51. (Reuters/Xinhua)