Intensifying Competition Pressure on Hong Kong Tech Stocks

Hong Kong's tech stocks fell due to competition concerns, while China's stocks rose, led by healthcare shares. Alibaba's subsidy plan impacts its stock. The Chinese government considers a price war crackdown. Services activity slows, while semiconductor restrictions ease.

On Thursday, Hong Kong's stock market experienced a downturn, mainly driven by a decline in tech stocks. Investors are concerned about fierce competition among e-commerce giants impacting profit margins.

Despite the Hang Seng Index closing down by 0.6%, China's market showed positivity with its blue-chip CSI300 Index up 0.6% and the Shanghai Composite Index rising by 0.2%.

Notably, shares of Alibaba plunged nearly 3% after announcing a substantial subsidy program, intensifying competition fears. Analysts from UBS highlighted the implications for the industry. Meanwhile, China's domestic services sector slowed, while healthcare stocks showed significant gains amid increased policy support.

(With inputs from agencies.)