Tech sector weakness drags Hong Kong shares lower

  • 1/5/2022
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Hang Seng index ends down 1.64% China Enterprises index HSCE falls 2.01% Hang Seng Tech index falls 4.63% to all-time low SHANGHAI, Jan 5 (Reuters) - Hong Kong"s Hang Seng index closed lower on Wednesday, as tech shares mirrored weakness in global peers, while Chinese top market regulator"s decision to impose new fines on leading technology companies also weighed on investor sentiment. ** At the close of trade, the Hang Seng index (.HSI) was down 1.64% at 22,907.25. The Hang Seng China Enterprises Index (.HSCE) fell 2.01% to 8,015.7. ** Following the market close, Hong Kong announced a two-week ban on incoming flights from eight countries and tightened restrictions to fend off a fifth wave of COVID-19 infections, in moves that could further weigh on investor sentiment on Thursday. read more ** China"s top market regulator announced fines against Alibaba, Tencent Holdings Ltd (0700.HK), and Bilibili Inc (9626.HK) for failing to properly report about a dozen deals. read more ** Bilibili"s stock slumped 10.63%, while shares of Tencent and Alibaba fell 4.31% and 2.05%, respectively. ** Meituan (3690.HK) was the biggest drag in the Hang Seng index on Wednesday, dropping 11.16% and pulling the Hang Seng Tech index down 4.63% to an all-time low. ** Mainland property firms listed in Hong Kong (.HSMPI) fell 0.99%, as developer China Evergrande Group (3333.HK) announced it is seeking a six-month delay on bond payments in a meeting with bondholders this week. ** Evergrande shares closed 0.62% lower. ** Shares of China Huarong Asset Management Co Ltd (2799.HK) plunged as much as 55% in Hong Kong to a record low, after trading resumed following a nine-month hiatus. read more ** Huarong shares ended 50% lower on the day. ** China"s main Shanghai Composite index (.SSEC) closed 1.02% lower at 3,595.18 points, while the blue-chip CSI300 index (.CSI300) ended down 1.01%. ** The yuan finished its domestic session at 6.3677 per dollar, stronger than Tuesday"s close of 6.3720.

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