Kuaishou Technology (01024.HK) saw its stock plummet by 5.08% in intraday trading, as Hong Kong's tech sector faced significant pressure. The sharp decline comes amid a broader selloff in Hong Kong stocks, with the Hang Seng Tech Index falling 2.4% and the main Hang Seng Index dropping 1.2% to a four-month low.
The tech selloff was particularly pronounced, with Kuaishou joining other industry giants like Nio and Xiaomi in experiencing a 4% decline. Market sentiment was heavily impacted by escalating US-China trade tensions, as US President Donald Trump announced plans to implement reciprocal tariffs on "all countries" starting April 2, dubbed as "Liberation Day". This move has rekindled fears of a potential trade war, putting additional pressure on Chinese tech stocks.
While China's manufacturing PMI showed expansion and the government announced plans to inject capital into state-owned banks, these positive factors were overshadowed by the looming trade concerns. Investors appear to be repositioning their portfolios in anticipation of increased market volatility, contributing to the significant drop in Kuaishou's stock price.
