Chinese stocks slump to 1-year low with Beijing’s probe into Apple supplier Foxconn’s mainland plants weighing on sentiment

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Chinese stocks slump to 1-year low with Beijing’s probe into Apple supplier Foxconn’s mainland plants weighing on sentiment

Chinese stocks slump to 1-year low with Beijing’s probe into Apple supplier Foxconn’s mainland plants weighing on sentiment

Chinese stocks fell to a 12-month low as foreign investors continued to offload holdings. Foxconn Technology Group’s mainland-listed arm tumbled on reports the company’s subsidiaries were being investigated by the government.

The Shanghai Composite Index declined 0.8 per cent to 2,958.13 as of 9.56am local time, the lowest since October 31. The CSI 300 Index dropped 0.7 per cent and the Shenzhen Composite Index retreated 1.3 per cent.

Hong Kong’s market is closed for a public holiday.

Foxconn Industrial Internet, a unit of Apple supplier Foxconn Technology, tumbled by the 10 per cent daily limit to 14.55 yuan in Shanghai, after China’s state media said that several of the group’s mainland Chinese plants were under tax and land use investigations. Hon Hai Precision Industry, Foxconn’s flagship listed arm, slid 2.4 per cent in Taiwan.
Shares of Foxconn’s mainland-listed arm fell amid reports of a probes by Beijing. Photo: AP Photo

Information technology and commodities stocks were the biggest decliners. Beijing Kingsoft Office Software dropped 2.9 per cent to 306.23 yuan and Ganfeng Lithium Group slumped 4.2 per cent to 43.51 yuan.

Overseas investors had dumped 37.2 billion yuan (US$5.1 billion) of Chinese stocks via the exchange link with Hong Kong this month up to Friday, taking the total to 164.2 billion yuan in almost three months, according to Bloomberg data.

Liquor giant Kweichow Moutai added 0.1 per cent to 1,647.23 yuan after reporting a 15.7 per cent increase in third-quarter profit.

Jiangsu Teeyer Intelligent Equipment, a machinery product maker, jumped 135 per cent to 22.50 yuan on the first day of trading in Shanghai.

Other major Asian markets fell. Japan’s Nikkei 225 slipped 0.5 per cent, South Korea’s Kospi eased less than 0.1 per cent while Australia’s S&P/ASX 200 lost 0.8 per cent.

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