Hong Kong shares dragged down by tech sell-off on planned algorithm rules
Sept 30 (Reuters) – Hong Kong shares ended lower on Thursday, dragged down by tech stocks after China said it would set up governance rules for algorithms in around three years.
The Hang Seng Index fell 0.4% to 24,575.64, while the China Enterprises Index lost 0.4% to 8,726.38.
** Quarterly, the Hang Seng Index dropped 14.8%, its biggest loss since the first quarter of 2020. The China Enterprises Index declined 18.2%, its biggest drop in six years.
** The Hang Seng Tech Index went down 1.3% on Thursday.
** The Cyberspace Administration of China said on Wednesday algorithms developed by technology firms should uphold core values of socialism and that enterprises should set systems for algorithm safety and responsibility.
** Index heavyweight Alibaba Group tumbled 4.1%, dragging the city’s benchmark down 76 points.
** The property sub-index and the mainland property sub-index gained 1.6% and 3.6%, respectively, after China’s central bank said financial institutions should maintain a stable and healthy development of the property market and protect consumer rights.
** The property market has already bottomed out and with more favourable policy seen ahead, it is a good time to add both China’s property and property management sectors, CGS-CIMB Securities said.
** Debt-laden China Evergrande Group dropped nearly 4% after it missed bond interest payment due on Wednesday, its second unpaid offshore debt payment in a week.
** A sub-index tracking healthcare stocks added 1.1%.
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