Hong Kong Market tumbles 1.6%

Hong Kong share market closed session lower on Wednesday, 05 January 2022, as investors became cautious that the Federal Reserve could deliver an earlier-than-expected interest rate hike, with tech stocks leading losses after Beijing passed new rules that tighten controls on tech companies' overseas listings and activities, while forbidding unreasonable discrimination in pricing based on user habit data, a key monetization tool for China's largest e-commerce and short-video platforms.

At closing bell, the benchmark Hang Seng Index stumbled 1.64%, or 382.59 points, to 22,907.25. The Hang Seng China Enterprises Index fell 2.01%, or 164.46 points, to 8,015.70.

Shares of tech companies tumbled after China's top market regulator announced on Wednesday that it has fined units of Alibaba, Bilibili and Tencent for improper reporting of deals. The country's cyberspace regulator also announced Wednesday draft rules affecting mobile apps, including a security review requirement for those with functions that could sway public opinion.

 

Meituan slumped 11.2% and Bilibili Inc. declined 10.6%. JD.com Inc. and Kuaishou Technology both lost more than 7%. Tencent was 4.3% lower, after the company sold a US$3 billion stake in Singaporean internet company SEA Ltd. days after it sold shares in JD.com.

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