Hong Kong Stocks Trim Early Gains As Tencent Drags
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.
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