Hong Kong Stocks fall for fifth session in row

Hong Kong stock market finished lower for fifth session in row on Thursday, 25 March 2021, as risk aversion selloff continued amid regulatory concerns after the US adopted rules requiring Chinese and other foreign-listed companies to submit financial audits, or face ejection from Wall Street.

At closing bell, the benchmark Hang Seng Index dropped 0.07%, or 18.53 points, to 27,899.61, a lowest level since January 11, 2021. The Hang Seng China Enterprises Index fell 0.96%, or 103.71 points, to 10,744.27.

The US Securities and Exchange Commission is taking initial steps to force accounting firms to let regulators review the financial audits of overseas companies. The penalty for non-compliance, as stipulated by a law known as The Holding Foreign Companies Accountable Act (HFCA) that Congress approved in December, is ejection from the New York Stock Exchange or Nasdaq.

 

Technology stocks declined as the U.S. Securities and Exchange Commission announced Wednesday the adoption of measures that would remove foreign companies from American stock exchanges if they do not comply with U.S. auditing standards. Tencent Holdings crashed almost 3 per cent. Smartphone maker Xiaomi Corp lost 4.4 per cent to HK$23.90 while AAC Technologies fell 1.1 per cent to HK$39.65. Alibaba Group Holding, the owner of this newspaper, tumbled 3.9 per cent to HK$221

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