Hong Kong stocks dropped by the most in three weeks, as the sudden flare-up in US-China tensions weighed on sentiment.
The Hang Seng Index fell 1.6 per cent to 25,634.35 in early Wednesday trading, heading for the biggest decline since October 4. Chinese technology stocks proved to be a major drag on the broader market, with the Hang Seng Tech Index sinking 3.2 per cent. Meituan and Alibaba Group Holding shed at least 2 per cent.
China’s Shanghai Composite Index lost 0.7 per cent.
Ties between Beijing and Washington took a sudden wrong turn even after media reports said that high-level officials from the two sides held “candid’’ talks.
Separately, US lawmakers held a hearing on how to protect American investors that invest in Chinese stocks over issues ranging from audits to fake company names and forced labour, fanning speculation that Congress will enact laws next year that will lead to the delisting of Chinese companies trading in the US.
In another related development, the US Federal Communications Commission revoked the licence of a China Telecom subsidiary to operate in the nation.
US-listed Chinese stocks slumped overnight, with the Nasdaq Golden Dragon China Index losing 3.8 per cent for the biggest decline in more than a month.Internet Explorer Channel Network