The Chinese stock markets lost ground on Tuesday. The sanctions imposed on the country by the European Union, the United States, Canada and the United Kingdom for the oppression of the Uyghur Muslim minority in Xinjiang have caused investor reluctance.
Other stock markets in the Asian region also showed losses. The transport companies and travel sector, in particular, were under pressure due to the extension of the lockdown measures in many European countries.
The stock market gauge in Shanghai was 1.1 percent lower, and the Hang Seng index in Hong Kong lost 1.4 percent. China immediately retaliated after the EU’s human rights sanctions and imposed punitive measures on European politicians, including Member of Parliament Sjoerd Sjoerdsma. The sanctions of the Western countries are mainly causing reticence among international investors in China.
Geely fell more than 5 percent in Hong Kong. The Chinese car manufacturer saw its profits fall sharply in the past year due to the corona crisis’s impact on car sales. The company also announced that it would set up a joint venture with parent company Zhejiang Geely Holding Group for electric vehicles under the Zeekr brand name. The Chinese tech group Baidu had a fairly stock market debut in Hong Kong, trading almost flat against the introductory price. Baidu is already listed on the US tech exchange Nasdaq.
The Nikkei in Tokyo ended 0.6 percent lower at 28,995.92 points. Sea transport company Kawasaki Kisen Kaisha and airline ANA Holdings lost more than 6 percent and more than 5 percent, following the significant price losses among European and American peers.
The Japanese automakers Toyota, Nissan and Honda showed a recovery after the heavy losses a day earlier. Renesas (plus 2.6 percent) also rebounded. The Japanese chipmaker fell nearly 5 percent on Monday due to a fire at the company’s factory. The fire is likely to cause a further shortage of computer chips in the automotive sector.
