Hong Kong and mainland stocks fell on Tuesday, with automobile shares weighed down by tariff threats and peer competition worries.
The benchmark Hang Seng Index closed 227 points lower, or 1.06 percent, to 21,294. The main board turnover dropped to HK$219.61 billion, compared to the previous day, but remained above HK$200 billion for the third consecutive day.
The Tech Index retreated by 2.73 percent, closing at 5,142.
Shares in Chinese automakers were weighed down by potential US tariffs and competition concerns following BYD’s (1211) move to offer free smart driving features.
XPeng (9868) fell 9 percent, the steepest decline among Tech Index constituents, while Geely Automobile (0175) dropped over 10 percent, the worst-performing blue-chip stock.
BYD initially gained after announcing a plan to offer autonomous driving on most of its models only to reverse course and close 0.73 percent down.
NIO (9866) fell 2.2 percent, while Li Auto (2015) dropped 5.59 percent.
Major listed steelmakers also came under pressure after US President Donald Trump raised tariffs on steel and aluminum imports to 25 percent on Monday. Maanshan Iron and Steel (0323) decreased by 4.44 percent while Angang Steel (0347) declined by 3.75 percent.
Mainland markets also slid. The Shanghai Composite Index closed at 3,318 points, down 4 points or 0.12 percent. The Shenzhen Component Index ended at 10,557 points, falling 73 points or 0.69 percent.
STAFF REPORTER
