Hong Kong stocks set for third week of losses as investors resort to profit-taking

Hong Kong stocks reversed gains on Friday, as investors pulled back ahead of more tariff announcements from the US and concerns about financial pressure facing some companies.

The Hang Seng Index dropped 0.9 per cent to 23,368.67 at the noon trading break, after rising as much as 0.8 per cent, putting it on track for its third weekly loss. The Hang Seng Tech Index declined 1.7 per cent. On the mainland, the CSI 300 Index traded 0.6 per cent lower, while the Shanghai Composite Index fell 0.7 per cent.

Electric-vehicle maker Nio sank 7.8 per cent to HK$30.00 after it announced a new share placement in Hong Kong to support its business, joining peers BYD and Xiaomi in selling additional shares this month. Xiaomi dropped 3.4 per cent to HK$49.95, while Horizon Robotics declined 5.4 per cent to HK$7.25.

Haier Smart Home dropped 7.1 per cent to HK$24.80 after its full-year net income missed estimates, while laptop maker Lenovo Group declined 4.8 per cent to HK$10.82.

Having digested US President Donald Trump’s 25 per cent tariffs on car imports, investors are bracing for a slew of new tariffs on April 2, which are likely to fuel inflation in the US.