Hong Kong stocks end lower as tech shares retreat amid Didi fallout

Hong Kong stocks closed lower on Monday, as tech firms slumped after Beijing's latest measures against online platform companies and ride-hailing firm Didi. ** The Hang Seng index fell 0.6% to 28,143.50, while the China Enterprises Index lost 1.4% to 10,274.18 points, its lowest closing level since Nov. 4, 2020.

Hong Kong stocks closed lower on Monday, as tech firms slumped after Beijing's latest measures against online platform companies and ride-hailing firm Didi.

** The Hang Seng index fell 0.6% to 28,143.50, while the China Enterprises Index lost 1.4% to 10,274.18 points, its lowest closing level since Nov. 4, 2020. ** The Hang Seng tech index dropped 2.3% to its lowest since mid-May.

** Tencent slumped 3.6%, Alibaba shed 2.8%, while JD.com, Baidu and Meituan retreated between 2.9% and 5.6%. ** Mainland investors on Monday sold a net 6.8 billion yuan ($1.05 billion) worth of Hong Kong stocks via the Stock Connect linking mainland and the Asian financial hub, Refinitiv data showed.

** China's market regulator issued draft rules on Friday to punish illegal pricing activities, including heavy subsidies and the practice by online platforms of charging different prices based on a customers' purchasing behaviour. ** Violation of the rules could incur a fine of 0.1% to 0.5% of a business' annual sales or even suspension of operations, according to a statement from the State Administration for Market Regulations.

** China's biggest ride-hailing firm Didi Global Inc said on Sunday that the removal of its "DiDi Chuxing" app from smartphone app stores in China is expected to have an adverse impact on its revenue. ** Earlier on Sunday, China's cyberspace regulator ordered app stores to stop offering Didi's app after finding that the company had illegally collected users' personal data.

** On Monday, China's cyberspace watchdog said it is investigating online recruiter Zhipin.com, and truck-hailing apps Huochebang and Yunmanman, ramping up a crackdown on the mainland's tech companies amid tightened regulations on data security. ($1 = 6.4579 Chinese yuan renminbi)