SHANGHAI: Hong Kong shares finished down on Monday as tech names extended losses in response to China’s new rules to promote a faster recovery from the pandemic in the services sector.
The Hang Seng index fell 0.7%, to 24,170.07, while the China Enterprises Index lost 1.0%, to 8,455.99 points.
Tech giants listed in Hong Kong dropped 2.8%. Meituan closed down 4%, after the previous session’s nearly 15% slump, following guidance for online food delivery platforms to reduce service fees to help to lower operating costs for catering businesses. “We caution against an emotional take on a could-be innocuous directive that is supposed to help small businesses,” Hao Hong, Head of Research at BOCOM International, said in a note. “Regardless, in the near term, fear will trump reasons, causing much volatility for investors who are bottom-fishing in the Chinese internet space,” Hong added.
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