Tech stocks drag China, HK stocks lower on Beijing's new cybersecurity rules

China and Hong Kong stocks fell on Tuesday morning, dragged down by technology shares, as Beijing's new cybersecurity rules damp sentiment, despite a rebound in property plays. The Nasdaq-style STAR Market lost 2.2%, while the start-up market ChiNext dropped 1.3%. ** But property shares in China and Hong Kong rebounded sharply, as the sector witnesses elevated volatility on debt repayment worries.

China and Hong Kong stocks fell on Tuesday morning, dragged down by technology shares, as Beijing's new cybersecurity rules damp sentiment, despite a rebound in property plays. ** China's blue-chip CSI300 index fell 0.8% by the lunch break, while the Shanghai Composite Index lost 0.4%.

** The Hang Seng index dropped 0.3%, and the Hong Kong China Enterprises Index lost 0.5%. ** China's cyberspace regulator said it would implement new rules from Feb. 15 that require platform companies with data for more than 1 million users to undergo a security review before listing their shares overseas.

** The Hang Seng Tech Index fell 1.4% at the end of the morning session, erasing early gains, as China's continued clampdowns on the tech sector sour market mood. ** Tech shares also fell sharply in China. The Nasdaq-style STAR Market lost 2.2%, while the start-up market ChiNext dropped 1.3%.

** But property shares in China and Hong Kong rebounded sharply, as the sector witnesses elevated volatility on debt repayment worries. ** The Hang Seng Mainland Properties Index bounced 4.4% in morning trade, after a 2.8% decline on Monday.

** China's CSI300 Real Estate Index rose 2%. ** Cash-strapped property developer China Evergrande Group said its contract sales dropped nearly 40% last year, and it will actively maintain communication with creditors. Its Hong Kong-listed shares, which were suspended on Monday, will resume trading on Tuesday afternoon.

** Chinese telecommunication stocks, including China Telecom , China Unicom and China Mobile, rose, ahead of China Mobile's Shanghai listing on Wednesday. ** China Mobile sold 845.7 million shares at 57.58 yuan ($9.06) each in Shanghai, representing a 50% premium to its Hong Kong share price.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)