Hong Kong stocks fell from a two-month high, halting a six-week rally as investors digested latest signs of China’s economic challenges and corporate earnings setback amid a tariff war with the US.
The Hang Seng Index dropped 1.4 per cent to 23,282.33 on Monday, while the Hang Seng Tech Index slid 1.7 per cent. On the mainland, the CSI 300 Index slipped 0.6 per cent and the Shanghai Composite Index declined 0.1 per cent.
Chinese electric-vehicle (EV) maker BYD slumped 8.6 per cent to HK$425.20 from an all-time high after local media outlets reported that it would cut prices on 22 models to clear inventory and promote sales. Peers tumbled amid concerns over a prolonged price war would further erode margins. Geely Auto sank 9.5 per cent to HK$18.38 and Li Auto lost 3.2 per cent to HK$109.90.
Meituan retreated 5.5 per cent to HK$129.40 before its quarterly earnings report after trading hours on Monday. Alibaba Group Holding slipped 1.6…
