Chinese and Hong Kong stocks fell Tuesday morning, dragged by tech stocks as Beijing’s new cybersecurity rules dampened sentiment despite a rebound in property prices. China’s leading index CSI300 fell 0.8% during the lunch break and the Shanghai Composite Index fell 0.4%. The Hang Seng Index fell 0.3% and the Hong Kong China Enterprise Index fell 0.5%. China’s cyberspace regulator said it will introduce new rules from February 15, requiring platform companies with data of more than 1 million users to undergo security clearances before listing their shares abroad.
Financially-strapped property developer China Evergrande said the company’s contract sales have fallen nearly 40% over the past year and will be actively communicating with creditors. Hong Kong-listed stocks, which were suspended on Monday, will resume trading on Tuesday afternoon. Chinese telecom stocks, including China Telecom, China Unicom and China Mobile, rose ahead of China Mobile’s Shanghai listing on Wednesday. China Mobile sold its 845.7 million shares in Shanghai for 57.58 yuan ($9.06). This is a 50% premium to the Hong Kong stock price.
The Hang Seng Tech Index fell 1.4% by the end of the morning session, wiping out early gains as the continued crackdown on China’s tech sector weighed on market sentiment. Chinese tech stocks also plunged. His STAR market in Nasdaq style dropped his 2.2% and his ChiNext in the startup market dropped his 1.3%. But China and Hong Kong property stocks rallied strongly as the sector saw volatility rise on debt repayment concerns. The Hang Seng mainland property index fell in morning trading after it fell 2.8% on Monday. He rebounded by 4.4%. China’s real estate index CSI300 rose 2%.
- As a result of Beijing’s new cybersecurity regulations, tech stocks fall China and Hong Kong stocks
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