Hong Kong and China stocks fall as Alibaba breaks three-day winning run, Kuaishou plunges
- Hang Seng Index dropped 0.4 as Alibaba halted a three-day winning run
- Kuaishou plunged 7.8 per cent to HK$240, reaching its lowest level since its Hong Kong debut in February
The Hang Seng Index lost 0.4 per cent to 28,793.14. The Tech Index dropped 1 per cent, giving up some of the gains from Wednesday’s 2.3 per cent rebound. Technology stocks sold off overnight on Nasdaq.
The Shanghai Composite fell 0.5 per cent, while the CSI 300 index of the biggest stocks in Shanghai and Shenzhen dropped 0.6 per cent. The tech-heavy ChiNext in Shenzhen fell 0.5 per cent.
Government regulation is a major risk in the tech sector, as authorities in the US, Europe and China have all been closely monitoring and applying pressure on the influence and power of big tech companies, Franklin Templeton analysts Evan McCulloch and Jonathan Curtis wrote in a note on Thursday.
“However, such action, although detrimental to the big players, may be a tailward for small and mid-sized tech companies, who will then find it easier to compete, and that can be a positive for investors.”