SHANGHAI: Hong Kong shares closed lower on Monday, dragged down by index heavyweight Alibaba following a report about a corruption scandal, while other tech giants also weighed.

The Hang Seng index fell 1.2%, to 24,656.46, while the China Enterprises index lost 1.5%, to 8,658.11 points.

Alibaba Group slumped 6.3% and was the biggest drag on the Hang Seng Index, after a report said its financial affiliate Ant Group was connected to a corruption scandal.

China’s top anti-graft watchdog pledged to investigate and punish any corrupt behaviour found behind internet platform monopolies.

Meanwhile, the Hang Seng Tech index dropped 2.8%, tracking Wall Street losses with the US Federal Reserve expected to confirm it will soon start draining the massive pandemic-era liquidity.

Meituan and Tencent Holdings fell 2.2% and 1.1%, respectively.

Shares of China Evergrande Group jumped nearly 4%.


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