Alibaba, Meituan dent Hong Kong stocks after report on Ant Group break-up reignites regulatory worries
- Hang Seng Index dropped 1.5 per cent on Monday as regulatory concerns hit a notch higher and casino stocks slipped amid new Covid-19 cases in China
- Alibaba, Meituan and Tencent led losses after the Financial Times said Chinese regulators are seeking to break up Alipay and its lending business
The Hang Seng Index tumbled 1.5 per cent to 25,813.81 on Monday, following a rally in the preceding three weeks. Alibaba Group Holding, which owns one-third of Ant Group and this newspaper, lost 4.2 per cent while Tencent Holdings declined 2.7 per cent and Meituan slid 4.5 per cent. The tech gauge retreated by 2.3 per cent.
“Regulatory measures are still impacting the market,” said Alvin Cheung, associate director at Prudential Brokerage in Hong Kong. The Hang Seng will fluctuate around 25,000 this month, while performance of tech stocks will diverge, he added.
The Ministry of Industry and Information Technology on Monday ordered tech companies to unblock rival links, adding another blow to investor sentiment. Other tech stocks also declined. Alibaba Health Information Technology fell 4.8 per cent and JD.com lost 2.5 per cent.
Four new listings in the mainland market surged. Shanghai Labway Clinical Laboratory jumped 338 per cent to 18.27 yuan while Jinsanjiang Zhaoqing Silicon Material soared 267 per cent to 29.70 yuan. Guangzhou Hexin Instrument rallied 425 per cent to 93 yuan and HHC Changzhou Corp rose 18.5 per cent to 86.15 yuan.