Auto price war concerns jam brakes on HK stocks
The Hang Seng Index lost 318.93 points, or 1.35 percent, to end the day at 23,282.33. File photo: AFP
Mainland Chinese and Hong Kong stocks retreated on Monday as automobile shares slid on price war concerns and Apple suppliers dropped on potential US tariffs.
In Hong Kong, the benchmark Hang Seng Index lost 318.93 points, or 1.35 percent, to end the day at 23,282.33.
The Chinese H-share index listed in Hong Kong, the Hang Seng China Enterprises Index, fell 1.7 per cent.
Carmakers slipped, weighing on both onshore and offshore markets, after BYD slashed prices on some of the models to spur sales as competition heats up.
Its Hong Kong-listed shares dipped 5.9 per cent, while rival Geely Auto tumbled 9.5 per cent.
The CSI All Share Automobiles Index lost 2.9 per cent, the biggest single-day drop in five weeks, while the Hang Seng Automobile Index in Hong Kong tumbled 4.9 per cent.
"The price cuts could put some short-term pressure on earnings," analysts at Sinolink Securities said in a note.
"It got investors concerned about profitability, and the sector is likely to enter a correction."
Apple supplier stocks also lost some ground after US President Donald Trump threatened tariffs on imported iPhones.
iPhone assembler Luxshare lost 0.2 per cent.
Chinese stocks closed lower, with the benchmark Shanghai Composite Index down 0.05 percent at 3,346.84.
The Shenzhen Component Index closed 0.41 percent lower at 10,091.16.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.8 percent to close at 2,005.26.
Tokyo stocks closed higher on news that the United States had agreed to delay the tariff imposition on EU goods.
The benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, closed at 37,531.53, up 371.06 points, or 1 percent.
However, China's yuan has strengthened past the 7.17 level after the central bank tightened the midpoint fixing, and analysts say the firming trend of the currency should lend support to the nation's stocks.
"We estimate every 1 per cent of RMB increase versus the USD could boost Chinese equities by 3 per cent," Goldman Sachs' China equity strategist Kinger Lau wrote in a note.
Sectors such as consumer discretionary, property, and brokers typically outperform when the yuan appreciates, he added. (Reuters/Xinhua)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
26 minutes ago
- South China Morning Post
Coca-Cola confirms a cane-sugar version of its trademark soda will be sold in US
Coca-Cola said on Tuesday it will add a cane-sugar version of its trademark cola to its US line-up this fall, confirming a recent announcement by US President Donald Trump. Trump said in a social media post last week that Coca-Cola had agreed to use real cane sugar in its flagship product in the US, which has been sweetened with high fructose corn syrup since the 1980s. Coke did not immediately confirm the change, but promised new offerings soon. On Tuesday, Coca-Cola Chairman and CEO James Quincey said Coke will expand its product range 'to reflect consumer interest in differentiated experiences'. 'We appreciate the president's enthusiasm for our Coca-Cola brand,' Quincey said in a conference call with investors on Tuesday. 'We are definitely looking to use the whole toolkitkit of available sweetening options.' Quincey noted that Coca-Cola uses cane sugar in some other US drinks, such as its Simply brand lemonade and Honest Tea. Coca-Cola has also sold Mexican Coke, which is made with cane sugar, in the US since 2005. 'We're always looking for opportunities to innovate and see whether there's an intersection of new ideas and where consumer preferences are evolving,' Quincey said. 'It's a good sign that the industry, including ourselves, is trying lots of different things.'
HKFP
3 hours ago
- HKFP
Nat. sec clause in application for new scheme to convert commercial buildings into student hostels
A national security clause is included in the application guidelines of a new scheme that allows commercial buildings in Hong Kong to be converted into student hostels. The application guidelines were released on Monday, the same day as the Education Bureau and the Development Bureau announced that the Hostels in the City Scheme had started accepting applications. The new scheme has streamlined development control procedures, allowing commercial buildings to be converted into student accommodation to provide housing for local and non-local full-time students, the government said. According to the application guidelines, if any applicant 'has engaged in or is engaging' in activities which are 'likely to constitute or cause the occurrence of offences endangering national security or which would otherwise be contrary to the interest of national security,' the premises will be excluded from the scheme and the applicant will be barred from joining the scheme for the coming three years. During his policy address last year, Hong Kong leader John Lee announced the 'Study in Hong Kong' brand to attract more overseas students, especially those from ASEAN and other Belt and Road countries, to study in Hong Kong. He said that to increase the supply of student hostels, a pilot scheme would be introduced to facilitate the market to convert hotels or commercial buildings into student hostels 'on a self-financing and privately funded basis.' The government also said on Monday that applicants for Hostels in the City Scheme must ensure the premises are occupied by full-time local or non-local students of eligible post-secondary institutions. Currently, a total of 31 such institutions are listed as eligible for the scheme. Non-students, such as visiting scholars, are allowed to live in such accommodation, but the number should not exceed 10 per cent of the total residents. The applicants of the scheme must also make sure the hostels have 'effective access control,' and no part or parts of eligible student hostels, such as rooms, shall be sold off by whatever means. Shortage of student accommodation Hong Kong has seen a shortage of student accommodation as more and more mainland Chinese students are admitted to universities in the city. Real estate services company Jones Lang LaSalle (JLL) estimated in March 2024 that the influx of non-local post-secondary students would fuel a shortage of 22,300 bedspaces for students in Hong Kong in the next four years. Bennett Yim, director of undergraduate admissions and international student exchange at the University of Hong Kong, told local media outlets in October that HKU supported the government's plan to create the 'Study in Hong Kong' brand, but universities in the city found it difficult to accommodate overseas students. Yim said HKU would consider cooperating with private developers to build student hostels.
The Standard
4 hours ago
- The Standard
Apple supplier Goertek to buy Luen Fung Commercial's units for $10.4 billion
FILE PHOTO: A person walks by the Apple store on Fifth Avenue in New York City, U.S., May 1, 2025. REUTERS/Kylie Cooper/File Photo
