Tech and property firms dragged Hong Kong stocks lower

  • 10/26/2021
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Oct 26 (Reuters) - Hong Kong shares finished down on Tuesday, dragged by tech and property firms. A planned pilot real-estate tax scheme continued to dent risk appetite. The Hang Seng index fell 0.4%, to 26,038.27, while the China Enterprises Index lost 0.7%, to 9,259.43 points. ** The Hang Seng Tech Index lost 1.3%, index heavyweights Alibaba Group and Meituan dropped 2.6% and 1.3%, respectively. ** Alibaba Health Information Technology slumped more than 10%, the biggest decliner on the Heng Seng Index. ** Alibaba Health said it expected to record a net loss of not more than RMB320 mln ($2.04 bln) for six months ended in September, due to increase in deployment of group’s resources. ** The Hang Seng Mainland Properties Index plunged 4.3%, fuelled by concerns over a planned pilot real estate tax scheme. ** Mainland property firms Country Garden, China Evergrande Group, Sunac China lost between 4% and 7.4%. ** The property tax, likely to be tested initially in first- and second-tier cities, “will hurt home-buyer sentiment and discourage investment demand, and thus, deepen the physical property market downturn,” brokerage CLSA wrote in a note. ** “We expect more property policy fine-tuning to offset the negative impact of the property market downturn and weak economic outlook,” CLSA added. ** Modern Land has become the latest Chinese property developer to miss a bond payment, adding to worries about wider effects of the debt crisis at behemoth China Evergrande Group. ** The energy sub-index and the healthcare sub-index lost about 1% each. ** Hong Kong-listed Chinese electric vehicle makers jumped. Investor sentiment was boosted after Tesla surpassed $1 trillion in market value on Monday. ** China’s Xpeng Inc led the gains, up 8.7%, after it said it would accelerate development to mass produce vehicles fitted with the latest digital technologies. Reporting by the Shanghai Newsroom Editing by Raissa Kasolowsky

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