Hong Kong’s stock market experienced its most catastrophic trading session on Monday, with the benchmark Hang Seng Index plummeting a staggering 13.22% in a single day, marking the largest points loss in its history.
The dramatic market collapse pushed the index below the technical bear market threshold, falling more than 20% from its March peak and closing at 19,828 points. The selloff reflects mounting global economic uncertainties and escalating trade tensions.
Trading volume surged to an unprecedented HK$620.9 billion, highlighting the intense market volatility. Major technology and corporate giants bore the brunt of the selloff, with Tencent and the Tracker Fund of Hong Kong each experiencing over HK$50 billion in trades.
Tech and enterprise indexes were equally battered, with the Hang Seng China Enterprises Index dropping 13.75% and the Hang Seng Tech Index tumbling 17.16%.
Notably, several blue-chip stocks suffered devastating losses, with companies like WuXi Biologics, Lenovo, and Geely Automobile experiencing drops exceeding 20%.
The mainland Chinese markets mirrored Hong Kong’s turmoil, with the Shanghai Composite Index plunging 7.34% — its most significant single-day decline in five years — while the Shenzhen Component Index sank 9.66%.
Stock Connect turnover surged 89%, though its proportion of market turnover dropped to 19.6%, the lowest since late March. Net southbound investment flows declined 46.6% to HK$15.37 billion.
Only utilities demonstrated relative resilience, with CLP Holdings and Power Assets experiencing minimal losses compared to the market’s broader bloodbath.
As global markets continue to grapple with economic uncertainties, investors remain on edge, watching for potential stabilization or further market turbulence.
