Tech Stocks Drag China, HK Stocks Lower On Beijing’s New Cybersecurity Rules – Reuters

SHANGHAI, Jan 4 (Reuters) – China and Hong Kong stocks fell on Tuesday morning, dragged down by technology shares, as Beijing’s new cybersecurity rules damp sentiment, despite a rebound in property plays.

** China’s blue-chip CSI300 index (.CSI300) fell 0.8% by the lunch break, while the Shanghai Composite Index (.SSEC) lost 0.4%.

** The Hang Seng index (.HSI) dropped 0.3%, and the Hong Kong China Enterprises Index (.HSCE) lost 0.5%.

** China’s cyberspace regulator said it would implement new rules from Feb. 15 that require platform companies with data for more than 1 million users to undergo a security review before listing their shares overseas. read more

** The Hang Seng Tech Index (.HSTECH) fell 1.4% at the end of the morning session, erasing early gains, as China’s continued clampdowns on the tech sector sour market mood.

** Tech shares also fell sharply in China. The Nasdaq-style STAR Market (.STAR50) lost 2.2%, while the start-up market ChiNext (.CHINEXTC) dropped 1.3%.

** But property shares in China and Hong Kong rebounded sharply, as the sector witnesses elevated volatility on debt repayment worries.

** The Hang Seng Mainland Properties Index (.HSMPI) bounced 4.4% in morning trade, after a 2.8% decline on Monday.

** China’s CSI300 Real Estate Index (.CSI000952) rose 2%.

** Cash-strapped property developer China Evergrande Group (3333.HK) said its contract sales dropped nearly 40% last year, and it will actively maintain communication with creditors. Its Hong Kong-listed shares, which were suspended on Monday, will resume trading on Tuesday afternoon.

** Chinese telecommunication stocks, including China Telecom , China Unicom (0762.HK) and China Mobile (0941.HK), rose, ahead of China Mobile’s Shanghai listing on Wednesday. read more

** China Mobile sold 845.7 million shares at 57.58 yuan ($9.06) each in Shanghai, representing a 50% premium to its Hong Kong share price. read more

Reporting by Shanghai Newsroom; Editing by Rashmi Aich

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