Hong Kong shares fall on Beijing's latest tech crackdown; China mixed
Hong Kong and China shares fell on Monday, dragged by internet giants following a slew of moves by Beijing to crack down on the country's technology sector.
Hong Kong and China shares fell on Monday, dragged by internet giants following a slew of moves by Beijing to crack down on the country's technology sector. Chinese blue-chips were also pressured after new bank loans in August missed forecasts.
The Hang Seng index dropped 2.0% to 25,686.91. The Hong Kong China Enterprises Index lost 2.0% to 9,199.11. The CSI300 index fell 0.4% to 4,991.62 at the end of the morning session, while the Shanghai Composite Index gained 0.1%, to 3,706.73 points.
** Shares of tech giants Meituan, Alibaba Group, and Tencent Holdings slumped 6.3%, 4.5%, and 3.7%, respectively. ** The latest moves in Beijing's crackdown include telling delivery and ride-hailing firms to better protect workers, breaking up Ant's Alipay and forcing the creation of separate loans app, and telling internet giants to stop blocking each other's website links from their platforms.
** Chinese office developer SOHO China tumbled 35% in its biggest daily drop since listing more than 14 years ago after Blackstone Group Inc scrapped a $3 takeover deal. ** In the mainland, Chinese banks extended 1.22 trillion yuan ($189.51 billion) in new yuan loans in August, up from July but falling short of analysts' expectations.
** "Next year is an important year for the government as the ruling party will hold its 20th National Congress," said Zhiwei Zhang, Chief Economist at Pinpoint Asset Management in a note. ** "The government seems not in a hurry to loosen policies for now. They may prefer to raise fiscal spending around the year-end to boost growth next year."
** A sub-index tracking tourism fell 3.4%, as China reported the most locally transmitted coronavirus cases in one month ahead of the Oct. 1 National Day holiday. ** Shares of China's environment protection-related companies, however, rose on Beijing's plans to create the first green stock index in its latest push to curb carbon emissions.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)