18th March 2022


Hang Seng collapses with the worst session since May 2020

Although the focus of the market continues on Russia and Ukraine, the world continues to turn and Chinese companies listed in Hong Kong started the week with a decline of close to 5%, the worst daily session for the Hang Seng since May 2020, when it was left 5.5%. For its part, the CSI 300, which brings together the most traded securities on the Shenzen and Shanghai markets, fell 3%.

With these decreases, the Asian country's equities have already lost 16.5% in the case of the Hong Kong selective and 15% in the continental indicator, compared to the 13% that the European stock market falls or the 12.5% ​​yielded by the US S&P 500. Only the Nasdaq 100 has corrected more since January 1, 19.5%, with data at mid-session on Monday.

Misgivings over the close geopolitical relationship between Beijing and Moscow, renewed regulatory risks to technology and the worst coronavirus outbreak in the Shenzhen region since the start of the pandemic are fueling sales in the region. "We don't see a major catalyst in the near term to help Chinese stocks," says Marvin Chen, a strategist at Bloomberg Intelligence.

The possible fine that Tencent faces for alleged money laundering, and which led its titles to lose around 10%, nor the possible veto of Chinese firms listed in the US, also weighed on investors' spirits.