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Hong Kong stocks sink as Beijing tightens anti-competition rules on tech companies and US cautions investors on China bets
- Tencent, Alibaba, Meituan slumped as tech rout in Hong Kong deepens, sending the Hang Seng Index to its biggest drop since July 27
- SEC chair Gensler warned investors about investing in US-listed Chinese stocks while seeking better disclosure on regulatory risks
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Hong Kong and mainland China stocks tumbled by the most in three weeks after Beijing tightened its grip on technology companies with new draft rules banning unfair competition, and the US securities market watchdog cautioned investors about buying Chinese companies listed in the US.
The Hang Seng Index fell for a fourth day, losing 1.7 per cent to 25,745.87, the most since July 27. China’s Shanghai Composite Index and the CSI 300 of the biggest stocks in Shanghai and Shenzhen both declined over 2 per cent. The Hang Seng Tech Index slumped 3.1 per cent, wiping out US$56.5 billion of market value from its 30 members.
Losses deepened from early trading when jitters about Hong Kong’s decision to tighten travel curbs to stem Covid-19 infections unnerved investors, complicating efforts to revive the economy.
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Alibaba Group Holding, the owner of this newspaper, fell 4.8 per cent to HK$171.80, while Meituan declined 3.5 per cent to HK$213.60. Tencent Holdings fell 4.1 per cent to HK$435, before its earnings results on Wednesday. A news report said it was halting the listing of its music-streaming unit in Hong Kong amid regulatory concerns.
Operators must not implement or assist in the implementation of unfair competition on their internet platform, or disrupt the order of market competition and affect fair transactions, according to key terms in the draft released on Tuesday.
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