Chinese tech stocks fell in Hong Kong amid concerns about Alibaba Group Holding’s plan to register more American depositary shares. A private report today showed China’s services industry grew at the slowest pace in five months. The Hang Seng Tech Index tumbled 0.9 per cent. The broader Hang Seng Index slipped as much as 0.8 per cent, before ending little changed after a post-Lunar New Year rally over two days. Does Alibaba registering 1 billion American shares mean SoftBank is heading for the exit? Alibaba, the owner of this newspaper, slumped 4.5 per cent to HK$115, after it filed in the US to register 1 billion new American depositary shares , or about 36 per cent of its existing base. Each ADS represents eight ordinary shares in the Chinese e-commerce group. The Shanghai Composite Index jumped 2 per cent as stocks in mainland China caught up with gains elsewhere during the five-day trading break. The MSCI China Index rallied 4.7 per cent while the S&P 500 Index gained 1.6 per cent when onshore trading paused from January 31 for Lunar New Year. China’s stock market is lacking one major ingredient to rebound from bear territory, US fund manager says “During the Lunar New Year holiday, global risk assets recovered slightly, but volatility remains high” with a hawkish Federal Reserve, said Citic Securities in a note on Monday. “The volatility of the US stock market may continue to affect the global stock market.” Property developers fell, with the Hang Seng Property Index shrinking as much as 0.8 per cent. Property market transactions sank to a 17-month low as the fifth coronavirus outbreak in the city dented business activity. Hong Kong struggled to contain Covid-19 cases that surged to almost 700 cases in the past two days, clouding economic recovery prospects. Longfor retreated 2.1 per cent, while Wharf REIC and Hang Lung Properties fell at least 1.4 per cent. Elsewhere, the Caixin/Markit services PMI index fell to 51.4 in January from 53.1 in December, the weakest reading since August as a surge in Covid-19 cases and containment measures hit new business, consumer sentiment and employment. Despite Monday’s losses, the Hang Seng Index is still among the best performers across major world indices, with gains of about 4.9 per cent this year. Its rally last week had added US$142 billion of market value as investors expect further policy support in China to shore up stock prices. Major markets in Asia retreated. Korean stocks lost at least 0.2 per cent, Japanese equities fell 0.7 per cent, while the Australian benchmark slipped 0.1 per cent.