The Hang Seng Index fell 0.7 per cent to 17,900.09 at 10.40am local time, while the Tech Index weakened 1.1 per cent. The Shanghai Composite Index declined 0.6 per cent and struck five-month low.
BYD declined 0.6 per cent to HK$233.20 and Geely Auto tumbled 3.7 per cent to HK$8.38, after the European Union raised tariffs on the two companies by 17.4 and 19.9 per cent, in addition to the 10 per cent duty already in place for all electric cars imported from China.
Li Auto lost 1.7 per cent to HK$79.40, Xpeng tumbled 3.7 per cent to HK$30.20 and Nio dropped 1.2 per cent to HK$37.15, as additional duties, ranging from 20.8 to 37.6 per cent, came into effect beginning on Friday which would initially last for a maximum of four months.
Tencent gained 0.7 per cent to HK$385 and Alibaba added 0.7 per cent to HK$73.65, as the tech behemoths bucked the trend.
Still, the Hang Seng Index has added 1.2 per cent this week, the best gain in a month as mainland investors targeted high-yielding stocks, seeking diversification.
In the new issue market, Shandong Jianbang New Material jumped 117 per cent to 40.51 yuan per share on its first day of trading in Shanghai.
Other Asian markets were mostly higher as regional investors eyed the crucial US jobs data release which is widely expected to show a slowdown, improving chances of an interest-rate cut in September. Japan’s Nikkei 225 added 0.2 per cent, South Korea’s Kospi edged up 1 per cent and Australia’s S&P/ASX 200 was little changed.