Hong Kong shares drop following Didi delisting; Chinese stocks rise

SHANGHAI, Dec. 3 (Reuters) – Hong Kong shares fell on Friday as the delisting of New York-based ridesharing giant Didi scared investors and stoked the sale of tech giants, while consumer products from base helped Chinese stocks rise.

The CSI300 index (.CSI300) rose 0.4% to 4,872.97 at the end of the morning session, while the Shanghai Composite Index (.SSEC) gained 0.6% to 3,594 , 64.

The Hang Seng Index (.HSI) fell 0.7% to 23,612.43. The Hong Kong China Enterprises Index (.HSCE) lost 1.2% to 8,404.87.

** For the week, the CSI300 index edged up 0.3%, while the Hang Seng index lost 1.9%.

** Didi Global (DIDI.N) has announced that it will withdraw from the New York Stock Exchange and continue listing in Hong Kong, succumbing to pressure from Chinese regulators concerned about data security. Read more

** Following the announcement, Hong Kong-listed tech companies (.HSTECH) fell more than 2%.

** “This event makes the market believe that the current oversight of the mainland tech equity industry will continue,” said Kenny Ng, securities strategist at Everbright Sun Hung Kai in Hong Kong.

** “The decline in the prices of technology stocks listed in Hong Kong today also reflects this factor.”

** Alibaba Group (9988.HK) and Bilibili Inc (9626.HK) fell 4.6% and 7% respectively, reaching their lowest ever.

** Tencent (0700.HK) lost 2.9%, while Meituan (3690.HK) lost 4.5%.

** Real estate developer China Aoyuan Group (3883.HK) fell 16.8% after the developer warned shareholders it may not be able to repay $ 651.2 million in debt due lack of liquidity. Read more

** Activity in China’s service sector grew at a slower pace in November amid mounting inflationary pressures and persistent small-scale COVID-19 outbreaks, according to a private investigation. Read more

** In mainland markets, Consumer Staples (.CSICS) rose 2.1%, while liquor makers (.CSI399997) jumped 2.8%.

** Semiconductors (.CSIH30184) and utilities (.CSI000007) gained about 2.1% each, while coal miners (.CSI000820) jumped 3.2%.

Report from the Shanghai press room; Editing by Subhranshu Sahu

Our standards: Thomson Reuters Trust Principles.