Hong Kong Hang Seng Slips 0.1% On Tech-Sector Weakness

The Hong Kong Hang Seng Index opened lower Friday and could not recover, finishing off 0.1% on concerns about possible de-listing of China-based tech issues on Wall Street.

The Securities and Exchange Commission moved closer on Thursday to printing rules that would force Chinese companies comply with US audit requirements or face de-listing, while Beijing has required ride-hailing service Didi Global (DIDI) to de-list from Wall Street on concerns about security breaches.

The broad gauge Hang Seng fell 22.24 to 23,766.69, although gaining issues outnumbered losers 42 to 17. The Hang Seng TECH Index fell back 1.5%, while the Mainland Properties Index was steady.

Leading the upside on a choppy day were hotpot restaurant chain HaiDiLao (6862), up 7.2%, followed by the Hong Kong Exchanges (388), up 4.4%, and then Sino Biopharmaceuticals (1177), up 3.6%.

On the downside were online delivery service Meituan (3690), off 2.7%, and then e-commerce colossus Alibaba (BABA), off 2.6%.

On the mainland, the Shanghai Composite rose 0.9% to 3,607.43.

In other news, the November Caixin China General Services Purchasing Managers' Index (PMI) fell to 52.1 in November from 53.8 in October, reported IHS Markit. Readings above 50 indicate sector expansion, while below 50 point to contraction.