Almost all shares in the Hang Seng Index in Hong Kong traded lower Monday!
Hong Kong shares faced a wave of selling after the conclusion of the Chinese Communist Party’s national congress meeting over the weekend.
Tweet on market reaction on Xi’s reelection in China
The U.S.listed Chinese companies as of Today lost over 55$ Billion,according to FactSet Data:
•Alibaba: $21.45 billion lost
•Pinduoduo: $21.22 billion lost
•https://t.co/ShdJlrZxEv:$8.55 billion lost
•China Telecom: $0.67 billion lost
•Netease: $3.30 billion lost pic.twitter.com/kVcyw1NYKb
— The_Journalbiz (@the_journalbiz) October 24, 2022
FactSet Chart on China’s market reaction
The Hang Seng Index fell 6.4% on Monday, the biggest one-day decline since the global financial crisis, according to Wind data. It closed at its lowest level since April 29, 2009.
Shares in mainland China were also down, although not by as much. The benchmark CSI 300 was 2.9% lower, and the Shanghai Composite Index was down around 2%.
The selloff came after Chinese leader Xi Jinping cemented his control over the ruling Communist Party, appointing a number of loyalists to the party’s most powerful decision-making body and getting a convention-defying third term.
Foreign investors rushed to exit from China’s domestic stock market, pulling out 17.9 billion yuan, the equivalent of $2.5 billion, through the Stock Connect channel on Monday, Wind data shows. That is the biggest single-day outflow since the trading link was launched in late 2014.
- Almost all shares in the Hang Seng Index traded lower, but Chinese internet and technology stocks were particularly hard hit.
The shares of Alibaba Group Holding Ltd., Baidu Inc., JD.Com Inc., Meituan and Tencent Holdings Ltd. were all down more than 11%.
The selloff didn’t appear to be driven by the fundamentals of those companies but instead by investors’ expectations about the shifting balance between state-owned and privately owned enterprises in China, said Kinger Lau
source: Factset/Dow Jones
Image; China’s market