July 4 (Reuters) – Hong Kong shares suffered their worst day
in 2017, with a slump in index heavyweight Tencent Holdings
knocking the Hang Seng to a five-week low and
threatening to halt the index’s upward trend.
After the market’s rapid gain in the first half, “investors
are suffering from a bit of acrophobia,” said Charles Wang,
founder of Shenzhen-based fund house Academia Capital
“It’s natural for the market to see increasing volatility
The Hang Seng index fell 1.5 percent, to 25,389.01,
representing the biggest one-day percentage fall since Dec. 15.
The China Enterprises Index lost 1.0 percent, to
Hang Seng’s upward momentum already appears to be losing
steam, with the gauge fluctuating within a narrow range over the
past month, after jumping 17 percent in January-May.
Tencent, the market’s bellwether, tumbled over 4 percent,
its biggest loss in over six months.
Fund manager Wang attributed Tencent’s slump to recent
negative comments around its popular one-line game products, as
well as valuation concerns after its price surge.
Despite Tuesday’s slump, the stock is still up 42 percent
(Reporting by the Shanghai Newsroom; Editing by Richard Borsuk)