Monday, October 25

Hong Kong shares hit four-week high as tech giants rally

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SHANGHAI — Hong Kong shares rose to end at a nearly four-week closing high as Alibaba and Meituan rallied, with investors rushing to buy on bets that crackdowns against tech giants are nearing an end.

** The Hang Seng Tech Index rose 1.96%, with e-commerce giant Alibaba Group up 7.91% and food-delivery company Meituan gaining 8.36%

** The Hang Seng China Enterprises index rose 2.55% to 8,999.26.

** China’s antitrust regulator fined Meituan 3.4 billion yuan ($527.4 million), a smaller than expected figure, for abusing its dominant market position, the latest penalty in Beijing’s clampdown on online platforms. ** But analysts at Jefferies said that with the regulatory overhang now removed, the long-term outlook for Meituan is bright.

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** Alibaba rose for a fourth successive session, after Daily Journal Corp, chaired by Berkshire Hathaway Vice Chairman Charlie Munger, boosted its holdings by 83% during the third quarter, according to public disclosures.

** An index tracking the tech sector has dropped more than 40% from the highest point this year on China’s sweeping crackdowns, but rose 3.17% on Monday. ** The energy sub-index rose 1.07%.

** But Lenovo Group Ltd saw its stock fall more than 13% on Monday, its biggest intraday decline in more than three years, after the Chinese technology giant withdrew its application for a 10 billion yuan ($1.55 billion) share listing in Shanghai.

** Property and construction firms lagged the broader index, falling 0.43% on the day after a developer asked to delay a paper’s maturity, as offshore bondholders of China Evergrande Group awaited news of $148 million in looming debt coupons.

(Reporting by Chi Xue and Andrew Galbraith, Editing by Timothy Heritage)

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