May 23, 2019 / 8:46 AM / a month ago

HK stocks hit 4-month low on fears of tech cold war

May 23 (Reuters) - Hong Kong stocks dropped to four-month lows on Thursday, dragged by technology shares, as worries mount that the Sino-U.S. trade conflict could fast turn into a technology cold war and threaten global economic growth.

** The Hang Seng index fell 1.6% to 27,267.13, while the China Enterprises Index lost 1.9% to 10,401.11.

** After the United States placed Huawei Technologies on a trade blacklist last week, Reuters reported late on Wednesday the U.S. administration was considering Huawei-like sanctions on Chinese video surveillance firm Hikvision over the country’s treatment of its Uighur Muslim minority.

** In a report entitled, “Are you ready for a cold war in tech?”, Saxo Bank’s head of equity strategy, Peter Garnry, wrote, “What we are witnessing is a potential reconfiguration of global trade as it has stood since World War II ...investors should begin thinking about how sensitive their portfolios are to global supply chain-exposed shocks.”

** Hong Kong’s technology shares tumbled nearly 4%. Index heavyweight Tencent Holdings slumped 3.8% to a four-month low in its sixth straight session of decline.

** Hong Kong-listed Huawei suppliers including Sunny Optical Technology, AAC Technologies Holdings Inc and Q Technology (Group) Co Ltd fell sharply. (Reporting by the Shanghai Newsroom)

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