Hong Kong stocks tumbled on Tuesday, as investors weighed the geopolitical risk after China and the US left the door open for negotiations on the back of re-escalating tensions.
The Hang Seng Index fell 1.7%, while the Hang Seng Technology Index fell 3.6%.
In terms of star stocks, Hua Hong Semiconductor fell 13%; SMIC fell 9%; Bilibili and Kusihou fell 7%; Baidu fell 5%; Alibaba, Mixue, and NIO fell 4%; NetEase, Tencent, and Li Auto fell 3%; XPeng and Meituan fell 2%; Xiaomi and BYD fell 0.9%; JD.com fell 0.5%.
Sentiment remained skittish even after both China and the US eased the rhetoric following a global sell-off sparked by the flare-up of geopolitical tensions between the world’s two largest economies. US President Donald Trump said he might still meet his Chinese counterpart Xi Jinping in South Korea at the end of the month, while China’s commerce ministry said its tightening of rare earths exports was not intended to block the US’ access to the critical metals.