Hong Kong stocks hit 6-month low as techs slump on regulatory worries; China down

SHANGHAI: Hong Kong stocks fell on Thursday to a six-month low, as tech firms slumped on persistent regulatory worries.

** The Hang Seng index dropped 2.0%, to 27,401.12 points, lowest since Jan. 5, while the Hong Kong China Enterprises Index lost 2.4%, to 9,908.37.

** Falling the most, the Hang Seng tech index tumbled 3% by the midday break to its lowest since Oct. 7, on track for a seventh straight day of losses.

** Bilibili Inc, Meituan, Baidu Inc and JD.Com Inc retreated between 3.6% and 7.7%.

** Tencent and Alibaba fell 2.9% and 2.7%, respectively.

** China's market regulator said on Wednesday it has fined a number of internet companies including Didi Chuxing, Tencent and Alibaba for failing to report earlier merger and acquisition deals for approval, according to a statement on the website of the State Administration of Market Regulation (SAMR).

Hong Kong shares suffer fresh losses by close

** Amid persistent regulatory worries, Linus Yip, chief strategist at First Shanghai Securities said,"those leading tech companies are still in the process of seeking a bottom."

** He added a decreasing US ten-year yield since June also dampen the appeal of traditional cyclical firms, making investors more reluctant to rotate when there was a slump in new economy stocks.

** On the mainland, the CSI300 index fell 0.7%, to 5,105.07 points at the end of the morning session, while the Shanghai Composite Index lost 0.6%, to 3,533.63 points.

** Leading the losses, the CSI300 financial index and the CSI300 energy index retreated 2% and 2.4%.

** China will use timely cuts in the bank reserve requirement ratio (RRR) to support the real economy, especially small firms, the cabinet said on Wednesday.

** There will not necessarily be a RRR cut after Beijing floats one, and it's yet to be a turnaround and investors should not overly expect loosening, Huachuang Securities analysts noted in a report.