Hong Kong shares close lower as tech giants drag

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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.

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The Hang Seng index fell 1.4% to 24,962.59, while the China Enterprises index fell 1.7% to 8,849.17.

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** 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.

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** 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)

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