Hong Kong Stocks Slump as JD.com Shares Plunge After Walmart Divestment

Hong Kong stocks dropped on Wednesday, led by a significant fall in JD.com shares as Walmart sold its stake in the e-commerce firm. The overall market sentiment was negative, with China’s blue-chip CSI300 and Shenzhen indices showing minor declines, while some tech stocks and video game stocks saw gains.

Hong Kong stocks witnessed a slump on Wednesday, driven by a sharp decline in JD.com shares after Walmart divested its stake in the Chinese e-commerce company. The U.S. retailer aims to raise up to $3.74 billion as it shifts focus to its China operations.

JD.com shares tumbled 10.2% by midday, dragging down Hong Kong's tech shares by 2.1%. Electric vehicle maker Xpeng fell 2.4% following a disappointing third-quarter revenue forecast and missed June-quarter sales estimates.

Conversely, video game stocks surged following the release of a highly popular title by a Tencent-backed startup, with Citi Press stocks jumping 5.5%. Despite these mixed performances, the Shanghai Composite Index fell 0.39% and the Hang Seng Index dropped 0.95% by the midday break.

(With inputs from agencies.)