Hong Kong Stocks falls as US-China tensions resurface

Hong Kong stock market finished session lower on Wednesday, 27 October 2021, weighed down by technology stocks after hearing by US lawmakers raises fear that a law is in the offing to possibly get Chinese companies booted from American exchanges.

At closing bell, the benchmark Hang Seng Index fell 1.57%, or 409.53 points, to 25,628.74. The Hang Seng China Enterprises Index fell 1.79%, or 165.63 points, to 9,093.80.

Chinese tech stocks tumbled as a flare-up in Sino-U.S. tensions sparked fears that more scrutiny from Washington could be in store for the sector. US lawmakers held a hearing on how to protect American investors that invest in Chinese stocks over issues ranging from audits to fake company names and forced labour, fanning speculation that Congress will enact laws next year that will probably lead to the delisting of Chinese companies trading in the US.

 

In another related development, the US Federal Communications Commission revoked the licence of a China Telecom subsidiary to do business in the U.S., citing national security concerns, dealing the latest in a series of blows against major Chinese businesses in the country.

Alibaba Health Information Technology retreated 6%, extending an 11% decline a day earlier spurred by a profit warning.

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