Guangzhou, a city of nearly 19 million in Guangdong province, reported a rise in COVID-19 infections in data released on Thursday and is now the largest among China's recent outbreaks. The surge in covid infections cases tempered recent enthusiasm over signs that China was easing its strict policy on COVID-related restrictions.
At closing bell, the benchmark Hang Seng Index fell 210.82 points, or 1.15%, to 18,045.66. The Hang Seng China Enterprises Index dropped 85.14 points, or 1.37%, to 6,140.57.
Among blue chips, Tencent slipped 0.8% to HK$292 after the WeChat operator said revenue fell in the third quarter and net income climbed 1%.
Alibaba Group lost 0.7% to HK$78.25. Meituan plunged 5.7% to HK$153 on stock overhang worries, after Tencent decided to give away US$20.3 billion of its stake in the food-delivery platform as dividend. The stake cut in Meituan makes the market worried that Tencent could also divest other tech stocks.
Baidu, Bilibili and Alibaba Health tumbled by 2.2 to 4.5%, as Tencent's report card unmasked weak sales and profitability following months of sector clampdown while Beijing pushed the common prosperity agenda.
NetEase shares crashed 9% to HK$103.50., as US gaming giant Blizzard Entertainment ended a 14-year online gaming partnership. The decision will deprive the Chinese firm of a major revenue source and end service for some of the most popular mobile games.
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