Hong Kong stock sell-off adds to China’s market instability

<img width="250" height="167" src="https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-Hong-Kong-stock-sell-off-adds-to-Chinas-market-instability-5901990059-iStock-1331964392-250×167.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="Hong Kong stock exchange" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-Hong-Kong-stock-sell-off-adds-to-Chinas-market-instability-5901990059-iStock-1331964392-250×167.jpg 250w, https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-Hong-Kong-stock-sell-off-adds-to-Chinas-market-instability-5901990059-iStock-1331964392-700×467.jpg 700w, https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-Hong-Kong-stock-sell-off-adds-to-Chinas-market-instability-5901990059-iStock-1331964392-768×512.jpg 768w, https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-Hong-Kong-stock-sell-off-adds-to-Chinas-market-instability-5901990059-iStock-1331964392-120×80.jpg 120w, https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-Hong-Kong-stock-sell-off-adds-to-Chinas-market-instability-5901990059-iStock-1331964392-245×163.jpg 245w, https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-Hong-Kong-stock-sell-off-adds-to-Chinas-market-instability-5901990059-iStock-1331964392-500×333.jpg 500w, https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-Hong-Kong-stock-sell-off-adds-to-Chinas-market-instability-5901990059-iStock-1331964392.jpg 1254w" sizes="(max-width: 250px) 100vw, 250px" /><p>Following market instability, the Hang Seng China Enterprises Index (HSCEI) plummeted 2.4%, a stone’s throw away from its lowest level in 20 years. The CSI 300 index also fell 1.6% at market opening. Across the water, however, Wall Street’s S&amp;P 500 index hit a 2-year record high to close last week’s market.</p>
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<p>Marvin Chen, an intelligence analyst at Bloomberg, noted that the technology stocks Meituan, Tencent Holdings Ltd. and <a href="https://www.leaprate.com/news/byd-plagued-by-shorting-as-ev-market-competition-spikes/" target="_blank" rel="noopener">BYD Co</a>. may need more supply chain interest and bigger, more attractive competitors.</p>
<p>Chen stated:</p>
<blockquote><p>Global markets have been surging on the chip sector, and this is an area where China and the rest of the world may run on separate tracks due to geopolitical tensions.</p></blockquote>
<p>Saxo Capital markets strategist Redmond Wong suggested that the reduced interest in the HSE is because Asian investors may face restrictions on the stocks they can hold and have removed holdings on the HSE instead of opting for home turf exchanges.</p>
<p>Compared to other manor benchmark global indexes, the HSE is the worst-performing exchange in 2024 to date, with a 13% loss of listed stocks. The S&amp;P 500, however, has gained 1.5%.</p>
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