Chinese companies with the biggest exposure to the US slumped in Hong Kong, sending the market to its worst day in more than 16 years, as President Donald Trump’s sweeping reciprocal tariff on all trading partners sent shock waves through the global financial markets.
The Hang Seng Index tumbled 12 per cent on Monday, a scale not seen since the global financial crisis in October 2008. BYD Electronic, which derived 69 per cent of its 2024 sales from overseas, plunged 21 per cent to HK$29.15. PC maker Lenovo, which relied on the US for 35 per cent of its 2024 revenue, slumped 22 per cent to HK$7.71.
Machine tool maker Techtronic slumped 10 per cent to HK$74 and biotech firm WuXi Biologics plummeted 25 per cent to HK$18.76. The US sales as a proportion of their total revenue were 76 per cent and 58 per cent, respectively, according to China Galaxy Securities International.
On the mainland, Apple supplier Luxshare Precision Industry tumbled by the 10 per cent daily limit.
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World leaders react to Trump’s new tariff blitz as global trade war escalates
World leaders react to Trump’s new tariff blitz as global trade war escalates
“We recommend investors to avoid companies whose business models are deeply embedded in the old global trade order, and heavily reliant on US goods exports,” said Edith Qian, a Hong Kong-based analyst at China Galaxy.
