Hong Kong Stocks Dip Amid Walmart's JD.com Stake Sale

Hong Kong stocks dropped on Wednesday, influenced by Walmart's stake sale in JD.com. This action caused JD.com shares to plummet and also impacted tech shares. Additionally, China's electric vehicle maker Xpeng fell after a weak revenue forecast. Regional indices, including Shanghai Composite and Hang Seng, also ended lower.

Hong Kong stocks took a hit on Wednesday, primarily due to Walmart's move to sell its stake in Chinese e-commerce giant JD.com, according to a term sheet reviewed by Reuters. The retail giant's decision aims to raise up to $3.74 billion and shift focus to its own operations in China, causing JD.com shares to tumble by 8.7% and dragging down tech shares by 1.9%.

Electric vehicle manufacturer Xpeng also contributed to market declines, falling 2.2% after forecasting third-quarter revenue below analysts' expectations and missing June-quarter sales estimates.

On the positive side, video game and related concept stocks saw gains, with Zhejiang Publishing & Media surging 10% following the launch of a new video game from a Tencent-backed startup. Despite this, the Shanghai Composite index dropped 0.35%, and the Hang Seng index fell 0.77%. Regional indices, including MSCI's Asia ex-Japan and Japan's Nikkei, also closed lower.

(With inputs from agencies.)