Hang Seng Index Dips as Tech Stocks Tumble, Trade Tensions Persist

The Hang Seng Index fell 0.20% to 23,236 in morning trade. Mainland China’s equity markets also posted losses on May 27. The CSI 300 fell 0.54%, while the Shanghai Composite dropped 0.26%.

Investors reacted to news of Meituan CEO Wang Xing stating he would ‘spare no effort to win competition’, weighing on tech stocks. Wang’s inability to provide guidance for Q2 and beyond also raised demand-side concerns.

JD.com (09618) slid 3.01% on the threat of intensifying competition impacting price margins. Alibaba (9988) and Baidu (9888) posted losses of 0.34% and 0.18%, respectively.

Auto stocks came under heavy selling pressure. BYD Company Ltd. (01211) slid 3.96%, while Li Auto (02015) and Geely Automobile Holdings Ltd. (00175) dropped 2.37% and 3.48%, respectively.

China’s Commerce Ministry reportedly called industry associations, including automakers like BYD, to a Tuesday meeting, spooked investors. Policy measures to fuel demand for China-built cars may trigger a EV share price rally.

Stimulus remains critical to support consumption. Near-term data will show whether policies are reviving growth. Private sector PMIs, due Saturday, May 31, will offer mid-Q2 insight into China’s economic trajectory.