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Hong Kong market falls as tech stocks lose most

By Mensholong Lepcha

05:00, 18 November 2021

Stock market screener
Stock market screener – Photo: Shutterstock

Hong Kong’s Hang Seng index extended losses on Thursday to fall over 1% by lunch break as tech heavyweights Alibaba Group and Tencent Holdings emerged as top losers.

Benchmark Hang Seng index fell about 1.3% to 25,305 by Thursday midday. The index closed 0.3% lower on Wednesday.

Tech stocks in Hong Kong tracked overnight losses on Nasdaq as Hang Seng TECH index dropped 3%.

Index heavyweights

E-commerce giant Alibaba Group was the top intraday loser in Hong Kong, down 4.9% to HKD156.7 by Thursday lunch, while WeChat operator Tencent Holdings slipped 2.5% to HKD496.4.

Year-to-date loss for Tencent came in at over 13% compared with Alibaba Group’s loss of over 31% in 2021, as of Thursday.

US30

36,260.80 Price
+0.920% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 11.0

US500

4,596.80 Price
+0.710% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.7

US100

16,001.20 Price
+0.470% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0

HK50

16,908.50 Price
-0.760% 1D Chg, %
Long position overnight fee -0.0261%
Short position overnight fee 0.0042%
Overnight fee time 22:00 (UTC)
Spread 30.0

Meanwhile, news of cash-strapped property developer Evergrande selling its stake in video streaming firm HengTen Network Group to raise $273m was not enough to buoy property stock listed in Hong Kong as the Hang Seng Mainland Properties Index fell over 2% on Thursday.

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Energy stocks slump

Elsewhere, Australia’s benchmark S&P/ASX 200 index inched 0.2% higher to 7,386.80 as gains in mining and tech stocks overpowered losses in banks and energy firms.

Aussie banking stocks extended their losses on Thursday after the country’s biggest lender flagged weakness in interest margin a day earlier. All “Big Four” banks traded in the red on Thursday pushing the S&P/ASX 200 Financials index 0.4% lower.

Japan’s Nikkei 225 index fell 0.8% to 29,444.68 as energy stocks slumped after oil futures dropped on oversupply concerns. Topix-17 Energy Resources sectoral sub-index fell 4.5% by Thursday afternoon in Tokyo.

Read more: Aristocrat (ALL) earnings rise, says Playtech deal on track

Markets in this article

9988
Alibaba Group
72.1 USD
-0.6 -0.830%
BABA
Alibaba Group Holding Limited (Extended Hours)
74.03 USD
-0.71 -0.950%
AU200
Australia 200
7141.0 USD
73 +1.030%
AU200
Australia 200
7141.0 USD
73 +1.030%
AU200
Australia 200
7141.0 USD
73 +1.030%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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