The Hang Seng Index fell 2.3 per cent to 22,765.52 at 9.55am local time, the biggest decline since April 7. The Hang Seng Tech Index slipped 2.7 per cent. Mainland markets are closed for the Dragon Boat Festival and will resume trading on Tuesday.
Electric carmaker Li Auto tumbled 3.7 per cent to HK$108.20, while peer BYD lost 2.4 per cent to HK$383.40. Short-video platform Kuaishou Technology dropped 4.8 per cent to HK$50.75, while sportswear manufacturer Anta Sports Products weakened 2.8 per cent to HK$92.75.
Among the handful of companies that advanced was online games provider NetEase, which jumped 1.2 per cent to HK$193.00. Casino operator Sands China added 0.8 per cent to HK$15.54, while peer Galaxy Entertainment Group rose 0.3 per cent to HK$33.50 after gaming revenue in Macau rose 5 per cent year on year in May to the highest level since January 2020.
Investors reassessed their optimistic bets after US President Donald Trump on Friday said China had violated a big part of the trade tariff agreement, without providing details.
“The recent clash might dim the outlook for US-China trade talks during the 90-day truce period, while the strategic decoupling between the two countries is inevitably intensifying,” Nomura analysts including Jing Wang said in a note on Monday.
