Beautiful Virgin Islands

Wednesday, Aug 27, 2025

Hong Kong stocks extend drop on crackdown woes before July economic reports

Hong Kong stocks extend drop on crackdown woes before July economic reports

Hong Kong stocks declined amid lingering concerns about regulatory crackdown in China, while traders braced for key data on China’s economic pulse amid a resurgence in delta cases.

Hong Kong stocks fell for a second day on lingering concerns that Beijing will extend its regulatory crackdown while traders braced for key data on China’s economic pulse.

The Hang Seng Index dropped 0.5 per cent to 26,391.62 at the close on Friday, reducing the advance this week to 0.8 per cent. Technology stocks paced losses as smartphone maker Xiaomi, Alibaba Group Holding and Tencent Holdings retreated by at least 2.4 per cent. The Shanghai Composite Index slipped 0.2 per cent.

Sentiment remained skittish as a plan released this week by the State Council, China’s cabinet, signalled policymakers will strengthen regulations to bring to order in a wider array of industries. The nation’s banking regulator was also said to be scrutinising the insurance sector for malpractices such as false advertising, according to media reports.

“China‘s regulatory crackdown now seemingly set for years ahead,” said Jeffrey Halley, an analyst at Oanda. “I doubt the cheapness of price to governmental risks ratio for China equities has finished its repricing exercise lower yet.”

Analysts from at least 15 brokerages – from UBS Group and Goldman Sachs to Citigroup, Oppenheimer and CLSA – have slashed their price targets for Alibaba’s depositary shares by at least 40 times since early November, leaving the market to guess the bottom. Alibaba owns this newspaper.

At the same time, a surge in delta cases has prompted authorities to reimpose lockdown measures and restrictions on travels in some provinces, clouding the nation’s recovery outlook. Industrial production, retail sales and fixed-asset investment in China probably moderated in July from the preceding month, according to estimates compiled by Bloomberg. The government will report the statistics on Monday.

Other markets in Asia-Pacific were mixed after US stocks charted new highs in overnight trading. The latest data showed US producer prices accelerated faster-than-expected in July, while initial unemployment claims fell for a third week and home prices rose by a record.

Elsewhere, WH Group, the world’s biggest pork processor, rose 3.3 per cent to HK$6.57 after founder Wan Long stepped down as chief executive, leaving the business empire to professional managers.

Tesla supplier Contemporary Amperex Technology climbed less than 0.1 per cent to 502.05 yuan in Shenzhen, erasing a loss of as much as 4.4 per cent. The world’s biggest maker of lithium batteries announced a plan to raise as much as 58.2 billion yuan (US$9 billion) in a private stock offering.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
×