Hong Kong shares drop over 1.5% as tech, casino stocks weigh
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Hong Kong shares ended lower on Wednesday, dragged down by tech and casino gaming stocks, following reports that Beijing will step up its efforts to promote the development of a "civilized" internet. ** The Hang Seng index closed 1.8% lower at 25,033.21, while the China Enterprises Index lost 1.6% at 8,936.53 points.
** Tech stocks declined after state news agency Xinhua said China will push for a more 'civilized' internet by strengthening oversight over the likes of news websites and online platforms. ** The Hang Seng Tech Index plunged 3.1%, with internet giants Tencent Holdings, Alibaba Group, and Meituan dropping 4.1%, 2.7%, and 4.5%, respectively.
** Shares of Macau casino gaming companies listed in Hong Kong tumbled as Macau kicked off public gaming consultation ahead of casino rebidding. ** China CSI index-tracking HK-listed gaming stocks slumped 23%, with constituent Sands China Ltd down 32.5%, the biggest daily decliner in the Hang Seng Index.
** China Evergrande Group dropped 5.4% to its lowest since January 2014 after Bloomberg reported that China's major banks have been notified by the housing authority that Evergrande won't be able to pay loan interest due Sept. 20. ** Evergrande's crisis has prompted worries of broader risks to the country's real estate market and financial system.
** The Hang Seng Property Index went down 2.2%, with property developer Country Garden slumping 8.8% to its lowest since May 2017. The Hang Seng Finance Index declined 1.1%. ** Insurance giant AIA Group shed 3.9%, dragging the city's benchmark down 81 points.
** The energy sub-index added 0.1% on strong oil prices.
