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Alibaba drags tech stocks lower in Hong Kong on overhang concerns while China data disappoints amid Omicron cases
- Tech and property stocks weighed on the Hang Seng Index while stocks in mainland China reopen with big gains after a five-day trading break
- Alibaba files in the US to register 1 billion American depositary shares, or about 36 per cent of its existing base
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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.
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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.
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.
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