The Hang Seng falls 1% in a session marked by the collapse of Alibaba

The Hang Seng falls 1% in a session marked by the collapse of Alibaba

The benchmark index of the Hong Kong Stock Exchange, the Hang Seng, closed today with losses of 1.07% in a session marked by the collapse of the value of the giant’s securities e-commerce market Alibaba after reporting a significant drop in profit in its second fiscal quarter.
Alibaba fell no less than 10.71%, a figure that takes even more strength if one takes into account that it is the second largest firm by market price of the selective and one of the fifteen largest in the world.

The group not only indicated that its net profit had fallen by 81% year-on-year in its second quarter, but also advanced that its turnover would grow in 2022 at the lowest rate of at least the last eight years due to competition in the Chinese market , Inter alia.

Thus, the selective lost 269.75 points today to 25,049.97, while the index that measures the behavior of mainland Chinese companies listed on the Hong Kong stock market, the Hang Seng China Enterprises, fell 0.72 %.

Among the sub-indices, only Real Estate (0.52%) rose while Finance (0.08%), Services (0.24%) and, above all, Commerce and Industry (1.97%) fell.
In the latter, other digital giants such as Tencent (0.16%) and Meituan (1.61%) also fell; Even worse was Alibaba’s health services subsidiary, Ali Health, which was infected after the collapse of its parent company and lost 4.26%.

In the financial area, they weighed more losses such as those of the insurer AIA (0.41%) than advances such as those of China Merchants Bank (0.7%).
In real estate, a very different story, with not inconsiderable rallies such as China Resources Land (6.05%) or Country Garden (5.49%).
Few changes among Chinese state companies, with exceptions such as the oil company Cnooc (+0.5%).

The business volume of the session was 136,520 million Hong Kong dollars (17,523 million dollars, 15,471 million euros).

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