Stock Market Crash: Hang Seng Index Crashes To 2016 Lows; Oil Sinks Another 6%

China’s stock market fell behind other markets in the region on Tuesday, despite positive Chinese economic statistics. Data from Eikon shows that Hong Kong’s Hang Seng index started falling more than 6% in midday trading activities before recovering slightly, falling 5.72 percent to 18,415.08, its lowest level since February 2016. According to a new report published Tuesday, China’s manufacturing employment in February and March rose 7.5 percent year-on-year, particularly in comparison to the 3.9 percent growth anticipated by economists in a Reuters poll.

Hong Kong Hang Seng Stocks

Refinitiv Eikon data shows that Hong Kong’s Hang Seng index fell 5.72 percent to 18,415.08 at the close of trading on Thursday, its lowest level since February 2016. Throughout the day, the buying and selling of Chinese tech investments in Hong Kong was incredibly unpredictable. During the day, the Hang Seng Tech index fell more than 7% before recovering to close the day at 3,472.42 points, down 8.1 percent.

Chinese Stock Market

Dual-listed Chinese stock markets in Hong Kong plummeted as shareholders assessed the possibility of delisting’s from U.S. exchanges. Alibaba was down 11.93 percent, JD.com was down 10.06 percent, and NetEase was down 7.68 percent. Electrical vehicle maker Nio fell 12.81 percent after the U.S.-listed shareholdings plummeted instantly on revived declassification concerns. After news broke that Tencent could be hit with a document perfect for breaking anti-money laundering rules, sentiments in Chinese tech shares took a hit on Tuesday morning.

Covid-19 Impact on Chinese Market

According to a new report published Tuesday, China’s industrial production in January and February rose 7.5 percent year-on-year, particularly in comparison to the 3.9 percent increase anticipated by economists in a Reuters poll. According to a poll by Reuters, China’s online sales exceeded all expectations as well, rising by 6.7% in January and February, particularly in comparison to analysts’ preconceptions of a 3% rise. As a result, major cities like Shenzhen, which have been struggling with one of the worst COVID-19 epidemics ever since the peak of the pandemic in 2020, are scrambling to constrain economic activity.