Hong Kong stocks recovered some ground on Tuesday after trading lower earlier in the session, as geopolitical tensions flared up following the US’ move to restrict Chinese investment in American technology and infrastructure.
The Hang Seng Index was down 0.7 per cent to 23,193.20 as of 11.35am local time. At one point, the benchmark was down by as much as 2.7 per cent. That would have been the gauge’s largest single-day decline since January 2.
The Hang Seng Tech Index, which has recently benefited from euphoria over DeepSeek’s artificial intelligence (AI) breakthrough, slipped 0.1 per cent. On the mainland, the CSI 300 Index slid 0.4 per cent and the Shanghai Composite Index retreated 0.1 per cent.
Alibaba Group Holding slumped nearly 3 per cent, following a 10 per cent plunge in its American depositary receipts overnight, after the company said it would invest at least 380 billion yuan (US$52.4 billion) in its cloud computing and artificial intelligence (AI) infrastructure over the next three years. That would be China’s largest-ever computing project financed by a single private business. Alibaba owns the Post.
Tencent Holdings lost 1.6 per cent to HK$489.40. Meituan slid 2.3 per cent to HK$162.70 and Baidu dropped 2.8 per cent to HK$87.
The Nasdaq Golden Dragon China Index, which tracks US-listed Chinese tech companies, tumbled more than 5 per cent overnight after President Donald Trump unveiled a memorandum last week to curb investments from China in critical industries. The memorandum, titled “America First Investment Policy”, stated that the administration would “use all necessary legal instruments”, including the Committee on Foreign Investment in the United States, to block China-affiliated investments in “technology, critical infrastructure, healthcare, agriculture, energy, raw materials, or other strategic sectors.”
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