Hang Seng Index falls 0.8% as tech stocks retreat, chipmakers rally
Hong Kong shares opened lower on 12 November with the Hang Seng Index falling 0.8 per cent. Major tech names declined while chipmakers rose. An Nvidia-linked inverse product surged 14 per cent amid investigations and lawsuits involving the US chip giant.
Hong Kong shares opened lower on Thursday as big tech names retreated, while chipmakers rallied. The benchmark Hang Seng Index fell 194 points, or 0.8 per cent, to 24,121 points. The tech gauge also dropped 0.8 per cent to 3,995 points.
Major tech names were largely in the red, with heavyweight Alibaba declining 2.19 per cent as the worst-performing blue chip, and Tencent dipping 1.37 per cent. Xiaomi and JD.com also fell 0.73 per cent and 1.89 per cent, respectively. Lenovo opened 1.2 per cent higher.
In contrast, Hua Hong Grace Semiconductor rose 2.5 per cent as the best-performing blue chip, while Semiconductor Manufacturing International Corporation rose 0.7 per cent. The CSOP NVIDIA Daily (-2x) Inverse Product, which delivers minus two times Nvidia's daily performance, surged 14 per cent amid news of a board-led investigation into potential foreign-intelligence targeting of Nvidia chief executive Jensen Huang, a shareholder lawsuit and broader market and political fallout.
Separately, CK Hutchison reportedly shelved its plan to spin off Watsons through a dual listing in London and Hong Kong due to current market conditions, and may restart the plan next year in a better market environment. The news weighed on its shares, which opened down 1.46 per cent. HSBC fell 0.6 per cent.
The city also welcomed two IPO debuts. Chinese semiconductor and full-stack robotics solution provider Amicro Technology surged 66 per cent to HK$16.41 at market open, with each board lot requiring 500 shares, delivering a paper gain of HK$3,255. Its retail tranche was oversubscribed 12.95 times. Semiconductor and memory product company HOSIN Global Electronics rose 0.4 per cent to HK$73.1, delivering a paper gain of HK$27 with 100 shares per board lot. Its retail tranche was oversubscribed 1.37 times.