1. Bad economic and ecological environment: The sharp decline of Hong Kong stocks is a reflection of the bad overall economic situation. Factors such as slowing economic growth, rising unemployment rate and declining consumer confidence lead investors to worry about future economic development, which in turn affects the performance of the stock market.
2. Financing difficulties: The collapse of Hong Kong stocks will lead to financing difficulties for listed companies. If the stock price falls, the company's market value will decrease, which will reduce its financing ability. This makes it difficult for the company to expand its business, invest or repay its debts, further affecting its profitability and development prospects.
3. Decline in profitability: The plunge in Hong Kong stocks is accompanied by the decline in profitability of listed companies. Economic depression and unstable market lead to the decline of sales, profits and even losses of enterprises. This will reduce investors' expectations of the company's future profitability, which will have a negative impact on the stock price.