October 12 (Businesshala) – Hong Kong stocks pulled down by tech heavyweights fell on Tuesday after reports by Chinese President Xi Jinping scrutinizing ties between lenders and large private firms.
The Hang Seng index fell 1.4% to 24,962.59, while the China Enterprises index fell 1.7% to 8,849.17.
** The Hang Seng Tec Index fell 3.2% after gains in the last three sessions.
** E-commerce giant Alibaba Group fell 3.9% after the Wall Street Journal noted Chinese President Xi Jinping noted that China’s state-run banks and other financial giants developed ties with big private sector players.
** Alibaba-linked high-profile fintech firm Ant Group is being closely monitored, the report said.
** “Market concerns about industry regulation in the mainland will continue,” said Kenny Ng, a securities strategist at Everbright Sun Hung Kai. “The relatively low valuation of Hong Kong stocks limits the scope for further sharp declines in the future.”
** The Healthcare sub-index, Energy sub-index and Industrial sub-index fell between 0.8% and 2.1%.
** Ping An Insurance Group lost 5.2%, the biggest intraday drop on the Hang Seng Index.
**Continuing the trend, Morgan Stanley said property firms rose 0.7% on hopes that regulators may ease their grip on the sector to help stabilize it and support the economy .
** Shares of Evergrande New Energy Vehicle Group rose 4.6%, a day after the company said it aims to begin production of electric vehicles next year despite a lack of outside investment. (Reporting by Shanghai Newsroom; Editing by Ramakrishnan M)