A selloff in Chinese stocks deepened on Friday afternoon, as disappointing tech earnings hit sentiment already weakened by concerns over Donald Trump’s imminent return.
The CSI 300 Index slumped 3.1%, the most since Oct 11. The Hang Seng China Enterprises Index lost as much as 2.4%, set to cap a second straight week of losses. Tech and electric vehicle-related shares were among the biggest losers.
The retreat extends the market’s slide since an October peak, underscoring growing frustration over Beijing’s underwhelming fiscal stimulus and jitters over a potential escalation in US-China tensions. The latest earnings from consumption bellwethers PDD Holdings Inc. and Baidu Inc. have done little to inject confidence, with the latter’s shares briefly plunging 10% in Hong Kong following a decline in revenue.
The investors “found nothing has improved from property and equity to consumption — also no positive surprise from corporate earnings,” said Steven Leung, an executive director at UOB Kay Hian Hong Kong.
Baidu Inc. recorded its biggest revenue drop in more than two years. PDD warned that its profitability will trend downward over time because of intensifying competition in its home market of China.
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The Hang Seng China gauge has now lost 17% since its October peak. The CSI 300 is down more than 8%.
