BYD Electronic, Lenovo sink over 20% as Trump tariffs hit exporters, equity markets
A 10 per cent tariff on exports could eat into China’s economic growth, putting Beijing’s 4.5 per cent target at risk, Morgan Stanley says
Chinese companies with the biggest exposure to the US slumped in Hong Kong, sending the market to its worst day in nearly 30 years, as President Donald Trump’s sweeping reciprocal tariff on all trading partners sent shock waves through the global financial markets.
The Hang Seng Index tumbled 13.2 per cent on Monday, a scale not seen since the Asian financial crisis in October 1997. BYD Electronic, which derived 69 per cent of its 2024 sales from overseas, plunged 22.4 per cent to HK$28.80. PC maker Lenovo, which relied on the US for 35 per cent of its 2024 revenue, slumped 23 per cent to HK$7.58.
Machine tool maker Techtronic slumped 10 per cent to HK$73.90 and biotech firm WuXi Biologics plummeted 26 per cent to HK$18.28. The US sales as a proportion of their total revenue were 76 per cent and 57 per cent, respectively, according to China Galaxy Securities International.
On the mainland, Apple supplier Luxshare Precision Industry tumbled by the 10 per cent daily limit.
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“We recommend investors to avoid companies whose business models are deeply embedded in the old global trade order, and heavily reliant on US goods exports,” said Edith Qian, a Hong Kong-based analyst at China Galaxy.