25 February 2020

HSI slumps over 300 points as telecom plays nosedive

Hong Kong’s benchmark index surrendered early gains to close below 23,000 points on Wednesday as investors sold off small-cap mainland stocks amid concern over their high valuations. Information technology and telecom stocks were hit hardest.

The Hang Seng Index slumped 316 points to close at 22,999, while the Hang Seng China Enterprises Index for H-share stocks finished 196 points lower at 10,457.

China Unicom (00762.HK) dropped 4.7 percent, the worst performer among blue-chip stocks. China Mobile closed down 2.4 percent.

Meanwhile, Chong Hing Bank (01111.HK) surged more than 7 percent to hit a record high in the afternoon trading session following reports that Yue Xiu Enterprises was close to acquiring the family-owned lender.

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