ZINGER KEY POINTS
- Shares of Meituan fell over 6% while Tencent shares declined close to 3%.
- Alibaba stock fell over 5% while EV-maker shares, too, witnessed a sharp sell-off.
Hong Kong stocks opened in the red on Thursday, with the benchmark Hang Seng losing over 2.5% in morning trade, following news of Tencent cutting its $20 billion stake in Meituan. The latter has said it would maintain its mutually beneficial business relationship with Tencent post the divestment, reported Reuters.
Shares of Meituan fell over 6% while Tencent shares declined more than 3%. Alibaba fell over 5% while EV shares also witnessed a sharp sell-off.
Company News: Tencent Holdings Ltd said on Wednesday it would return capital to shareholders via a dividend distribution of its $20.3 billion stake in food delivery firm Meituan as its sales decline for a second straight quarter, reported Reuters.
NIO’s flagship sedan ET7 received five stars in Euro NCAP and Green NCAP ratings,reported CnEVPost.
Top Gainers and Losers: Meituan and Alibaba Health Information Technology Limited are the top losers among Hang Seng constituents, having lost over 5%, respectively. Country Garden Services Holdings Company Limited and Longfor Group Holdings Limited are the top gainers, having risen over 4% and 1%, respectively.
Global News: U.S. futures traded in the green on Thursday morning Asia session. The Dow Jones futures were up 0.02% while the Nasdaq futures gained 0.1%. The S&P 500 futures were trading higher by 0.04%.
Elsewhere in Asia-Pacific, Australia’s ASX 200 was up 0.03%. Japan’s Nikkei 225 traded 0.37% lower, while China’s Shanghai Composite index fell 0.81% and South Korea’s Kospi lost 1.21%.
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