Hong Kong Stocks Trim Early Gains As Tencent Drags

MarketWatch Pulse

Hong Kong stocks opened higher Friday, tracking gains for U.S. markets, but soon fell back to the flat line as a heavy fall in index heavyweight Tencent Holdings Ltd. dragged on the market after New York-listed rival Alibaba Group Holding Ltd.'s earnings undershot estimates. The Hang Seng Index was flat, with the Hang Seng China Enteprises up 0.3%. Tencent retreated 2.6%, after stock in Alibaba plunged 8.8% overnight. Alibaba's two Hong Kong-traded subsidiaries also suffered significant losses, with Alibaba Pictures Group Ltd. dropping 3.6%, and Alibaba Health Information Technology Ltd. sliding 1.9%. Most of the other major tech stocks declined, as online game operator IGG Inc. retreated 3.7%, software developer Kingsoft Corp. fell 3.2%, rival Kingdee International Software Group gave up 3%, and game developer Boyaa Interactive International Ltd. shed 1.1%. Several brokerage firms extended losses after pulling back the previous day on reports of a further crackdown on margin-trading rules, with China Galaxy Securities Co. down 1.1%, and Shenyin Wanguo HK Ltd. off 1%. However, China Everbright Ltd. recovered 0.8%. Over on the Chinese mainland, the Shanghai Composite Index edged 0.3% lower.

Copyright © 2015 MarketWatch, Inc.

Continue Reading Below