Hong Kong’s Hang Seng Index plunged on Tuesday, dragged down by losses in tech and property stocks as concerns mounted over the economic impact of China’s ongoing COVID-19 lockdowns.
The Hang Seng Index fell 2.4% to 20,948.06, its lowest level since mid-March. The Hang Seng Tech Index plunged 4.6%, with Tencent Holdings Ltd. and Alibaba Group Holding Ltd. among the biggest losers.
Property stocks also took a hit, with Country Garden Holdings Co. and China Evergrande Group both falling more than 5%. The losses came as investors worried that China’s strict COVID-19 lockdowns would continue to weigh on the economy and hurt corporate profits.
China has imposed strict lockdowns in major cities such as Shanghai and Shenzhen in an effort to contain the spread of the virus. The lockdowns have disrupted supply chains and caused businesses to close, leading to concerns about a slowdown in economic growth.
In addition to the concerns about China’s economy, the Hang Seng Index was also dragged down by losses in global markets. Wall Street stocks fell on Monday amid worries about the impact of the war in Ukraine and rising interest rates.
The Hang Seng Index has now lost more than 20% of its value since the start of the year. The index has been hit by a number of factors, including the COVID-19 pandemic, the crackdown on tech companies by Chinese regulators, and the war in Ukraine.
Analysts said the Hang Seng Index could continue to face headwinds in the near term as investors remain cautious about the outlook for China’s economy and the global markets.
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