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Hang Seng Index
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Hong Kong stocks slip as Ant IPO woes slam Alibaba and fintech peers, Trump’s election gains rattle Chinese chip makers

  • Alibaba, HKEX and CICC, stocks related to the IPO, slumped after Chinese regulators halted Ant Group’s debut on compliance risks
  • Trump’s showing in southern US and Florida prompted traders to sell Chinese chip makers, Huawei suppliers as rivals claimed road to victory

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A monitor displays stock market information at a brokerage in Hong Kong. Alibaba shares slump in New York and Hong Kong after a surprise halt to Ant Group’s US$39.67 billion IPO on November 3, 2020. Photo: Bloomberg
Yujing Liuin Hong KongandZhang Shidongin Shanghai
Hong Kong stocks slid from a two-month high after a shock decision to suspend Ant Group’s record-breaking IPO punished Alibaba Group Holding and other fintech peers on regulatory tightening risks.
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President Donald Trump’s strong showing in southern US states and a close call in Florida also prompted investors to dump Chinese semiconductor producers and seek refuge in some beaten-down “old-economy” stocks such as banks and property developers.

The Hang Seng Index fell 0.2 per cent to 24,884.14 at the close of trading, after changing directions in a dozen times. The Shanghai Composite Index added 0.2 per cent to 3,277.44 while the Shenzhen Component Index rose 0.6 per cent.

The US dollar strengthened against the offshore yuan, climbing 0.9 per cent to trade at 6.733 per dollar. The US Dollar Index, which measures the greenback against a basket of major currencies, gained 0.3 per cent. Gold retreated 1.1 per cent to US$1,893.73 per ounce.

Chinese authorities surprisingly halted Ant Group’s up to US$39.67 billion stock offering on late Tuesday, less than 48 hours before its shares were due to start trading in Shanghai and Hong Kong. Ant Group said it many not meet listing qualifications and disclosure rules after an unspecified change in regulatory environment.
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Alibaba, which owns a third of Ant Group and this newspaper, slumped 7.5 per cent to HK$277.20 for its steepest loss since its local debut a year ago. Its American depositary shares tumbled 8.1 per cent in New York overnight.

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