Hang Seng Index rises as Xiaomi papers over cracks technology stocks and three new benchmark members slip

Name: China kicks off antitrust probes into Alibaba over alleged monopolistic practices
Uploaded: 2021-03-15T02:40:54.000Z
Duration: 1 min 26 s
Description: China kicks off antitrust probes into Alibaba over alleged monopolistic practices

Hong Kong stocks started on an uptrend as Xiaomi lifted the Hang Seng Index amid a slump in technology stocks and new benchmark members

Xiaomi ended the day with a 7 per cent rally, the most since December, after a US court suspended an investment ban

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Two ox statues at the Exchange Square in Central. Gain in Xiaomi overshadows losses in tech stocks. Hong Kong. Photo: Xinhua

Martin Choi

Published: 10:40am, 15 Mar 2021Updated: 5:16pm, 15 Mar 2021

Hong Kong stocks gained as smartphone maker Xiaomi soared after a US court suspended a ban on Americans investing in the company. The rally overshadowed losses in technology giants and mainland bourses after China signaled tighter scrutiny of internet monopolies.

The Hang Seng Index rose 0.3 per cent to 28,883.76 at the close, after tumbling 2.2 per cent on Friday for its biggest fall in two weeks, courtesy of a surge in smartphone maker Xiaomi Corp. The Hang Seng Tech Index fell 2.3 per cent. Benchmarks in mainland markets retreated amid heightened regulatory concerns.

Xiaomi rallied 7 per cent to HK$24.35 for the stock’s biggest one-gain surge since December, paring an advance of as much as 12 per cent, overshadowing steep losses in technology peers. Xiaomi has a 3 per cent weighting in the Hang Seng Index, according to Bloomberg data.

A US court on Friday suspended a US government ban prohibiting US persons from owning its shares because of alleged ties to the Chinese military. CNOOC, which also faces US sanctions, jumped 1.6 per cent to HK$9.12.

Technology stocks cracked again, China’s antitrust regulator fined entities related to a dozen groups including Tencent Holdings, Alibaba Group Holding, JD.com and Meituan for disclosure failures. The maximum fines, though small in sum, signaled enforcement against internet monopolies was strengthening.

“The bets on the technology giants may still face pressure in the short term,” said Gao Jingdong, an analyst at Shanxi Securities International. “China’s move to get tougher on the monopolistic practices and sprawling capital expansion, coupled with the lofty valuations of the tech stocks, will continue to drag down share prices.”

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China kicks off antitrust probes into Alibaba over alleged monopolistic practices

Tencent fell 3.5 per cent to HK$628, while JD.com plunged 6.2 per cent to HK$322.20 and Meituan declined 4.7 per cent to HK$317.20. Alibaba, the owner of this newspaper, dropped 2 per cent to HK$221.40.