Hong Kong stocks dropped after a poor report card from Chinese e-commerce platform operator PDD Holdings rattled industry peers including Alibaba Group Holding, suggesting discounts to attract consumers will hurt near-term earnings outlook.
The Hang Seng Index fell 0.5 per cent to 23,258.31 on Wednesday, while the Hang Seng Tech Index slipped 0.2 per cent. On the mainland, the CSI 300 Index lost 0.1 per cent and the Shanghai Composite Index was little changed.
Alibaba Group Holding retreated 2 per cent to HK$115.70 and JD.com slid 1.4 per cent to HK$126.50, while Meituan lost 0.5 per cent to HK$131.40. Among other loss leaders, Hansoh Pharmaceutical slumped 3.4 per cent to HK$25.65, EV maker BYD weakened 2.7 per cent to HK$407 and chipmaker SMIC retreated 2.5 per cent to HK$40.80.
PDD, the owner of Pinduoduo and Temu platforms, reported a 47 per cent slump in first-quarter earnings as growth in sales slowed, both trailing market…
