Media365
Hong Kong stocks fell on Thursday as the price wars in the food delivery and electric vehicle (EV) sectors and AI chipmaker Nvidia’s downbeat outlook weighed on sentiment.
The Hang Seng Index dropped 1.1 per cent to 24,929.18 at 9.58am local time, on course for a third day of loss. The Hang Seng Tech Index also lost 1.1 per cent. On the mainland, the CSI 300 Index rose 0.1 per cent, while the Shanghai Composite Index retreated 0.1 per cent.
Meituan warned of third-quarter losses after its second-quarter profit was wiped out due to “irrational competition” with Alibaba and JD.com. Its net profit plunged nearly 97 per cent to 365.3 million yuan (US$51.1 million) from 11.4 billion yuan a year earlier despite a 12 per cent increase in revenue.
The fierce competition in the on-demand delivery services sector is also playing out among the mainland’s top EV makers, who are grappling with overcapacity and weak consumer sentiment.
Li Auto slumped 3.4 per cent to HK$88.30 ahead of its earnings report later on Thursday, while BYD, the world’s biggest EV maker, eased 2.1 per cent to HK$112.70.
