Hong Kong Stocks drop on western sanctions against China

Hong Kong stock market finished lower for third session in row on Tuesday, 23 March 2021, as risk aversion selloff triggered after a coalition of western nations announced sanctions on Chinese officials for alleged human rights abuses against Uyghur Muslims in the Xinjiang region of the China's northwest. Meanwhile, heightened domestic regulatory risks also turned markets on the defensive mood.

At closing bell, the benchmark Hang Seng Index dropped 1.34%, or 387.96 points, to 28,497.38. The Hang Seng China Enterprises Index fell 1.73%, or 195.53 points, to 11,111.18.

The Hong Kong share market suffered a risk aversion selloff amid escalation of western nations -China Tensions. A coalition of western nations (The United States, the European Union, Britain and Canada) announced sanctions on Chinese officials for alleged human rights abuses against Uyghur Muslims in the Xinjiang region of the China's northwest, where the U.S. says China is committing genocide. China immediately announced retaliatory sanctions against the EU that appeared broader, including European lawmakers, diplomats, institutes and families, and banning their businesses from trading with China.

 

The Chinese government issued draft guidelines to regulate the e-cigarette industry, dealing a major blow to the world's biggest market for tobacco products.

Geely Automobile led blue chips lower, falling 6.6% to HK$22.55. The company reported its net profit fell 32% to 5.5 billion yuan in 2020. Meituan dropped 5.2% to HK$303.80, while smartphone maker Xiaomi dropped 4.1% to HK$25.65.

Baidu Inc, China's dominant internet search engine company, flopped on its trading debut in Hong Kong with zero premium over its IPO price of HK$252

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