Hong Kong stocks hit 6-year low
Hong Kong's Hang Seng Index dropped more than 5% on Tuesday — on the heels of a 5% drop on Monday — thanks to those COVID-related lockdowns as well as worries about renewed government clampdowns on homegrown tech giants.
The big picture: It's the biggest one-day drop for the index — a gauge of some of corporate China's largest global companies — since 2015. And the index hasn't been this low since early 2016.
- A tech-related subindex of the Hang Seng tumbled an eye-popping 11% on Monday, after the Wall Street Journal reported that Chinese tech giant Tencent faces a possible record fine from the Chinese central bank for violating money-laundering rules.
The bottom line: A serious disruption to tech production in Shenzhen — and even more so if lockdowns spread to Shanghai — would increase supply chain snarls and prices for tech products worldwide.