HONG KONG: China and Hong Kong stocks tumbled on Thursday as the sell-off in precious metals and technology stocks rippled through related sectors.
At the midday break, the Shanghai Composite index slipped 1percent to 4,059.91 points, and the blue-chip CSI300 index was also down 1percent.
The renewed selloff in gold and silver triggered heavy losses across precious metals stocks. The CSI SSH Gold Equity Index tumbled 5.4percent and the CSI SWS Non-ferrous Metal Index was down 5.6percent.
UBS SDIC Silver Futures Fund, the only silver futures fund in mainland China, is on track to hit the 10percent daily limit down for the fourth consecutive day.
Tech shares also faltered following a global selloff. The CSI AI Index was down 1.6percent and the semiconductor index declined 1.7percent.
“Liquidity is tightening seasonally before the Spring Festival, and investors may choose to reduce positions before the holiday to avoid overseas risks, putting downward pressure on indices,” analysts at Nanhua Futures wrote in a note.
Still, there’s a high probability of renewed strength after the holiday, especially strong policy support expectations provide solid underpinning, limiting downside space, they added. Solar-related shares also tumbled after multiple companies denied cooperation with Elon Musk. The photovoltaic industry index slid 5.5percent, and shares of Jinko Solar were down 5.6percent.
In Hong Kong, the benchmark Hang Seng was down 1.3percent. Hong Kong’s Hang Seng Materials Index fell more than 6percent. Baidu’s Hong Kong-listed shares climbed the most in two weeks on share buyback and dividend optimism.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 1.8percent while Japan’s Nikkei index was down 1percent.