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Shares of most U.S.-listed Chinese tech companies slid in Hong Kong on Monday, weighing on the benchmark Hang Seng Index, as surging oil prices due to the escalating Russia-Ukraine conflict and a spike in domestic COVID-linked deaths sapped risk appetite.

The Macro Factors

The Hang Seng Index opened sharply lower and was down 3.4% at the time of writing, extending losses from the previous session.

U.S. crude futures surged 7.7% to $124.64 per barrel in Asian trades Monday, as supply fears ballooned due to Russia's escalating war against Ukraine. 

Adding more pressure, Hong Kong reported the world’s highest fatality rate for COVID-19, with more than 100 deaths recorded daily over the past four days, as per a report by the South China Morning Post.

China on Monday posted its biggest one-day tally of coronavirus infections since the Wuhan outbreak at the start of the pandemic, according to a Bloomberg report.

The country on Saturday set a target for slower economic growth of around 5.5% this year, compared to growth of 8.1% last year, Reuters reported.

Companies In The News

Nio Inc. (NIO) began allowing test-driving of its ET7 sedan on Saturday as planned, with first deliveries to start at the end of this month, CnEVPost reported on Sunday.

China’s U.S. ambassador Qin Gang on Friday described Tesla, Inc's (TSLA) Model S Plaid as a "powerful model" that offered a "smooth ride" after being driven around in the car by CEO Elon Musk last week.

Shares of Chinese companies closed lower in U.S. trading on Friday after the major indexes extended losses from the prior session as Russia intensified its attacks on Ukraine.