China, Hong Kong end a volatile day down on tech slides

BEIJING, March 27 Thu Mar 27, 2014 6:17am EDT

BEIJING, March 27 (Reuters) - China and Hong Kong indexes had a bumpy ride on Thursday, with tech shares taking hits after a weak New York debut by gaming firm King Digital Entertainment Plc highlighted investor concerns that the sector was overpriced.

Shares in Tencent Holdings Ltd, China's biggest listed Internet firm with a profitable mobile gaming business, fell 6.3 percent to their lowest close in seven weeks.

The Hang Seng Composite Index for Information Technology fell 4.5 percent, its biggest drop in nearly two months.

Hong Kong web game developer Forgame Holdings Ltd dropped 8.1 percent while online game developer Kingsoft Corp Ltd fell 6.5 percent.

Shares on the mainland also had a volatile day, with the Shanghai Composite Index of leading Shanghai shares spiking out of negative territory on rumours that the central bank would loosen its reserve requirement ratio, which drove up small and mid-cap banks.

But in the last 30 minutes of trading, with the rumour unsubstantiated, the index slid back into negative territory, closing down 0.8 percent at 2046.6 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings declined 0.7 percent.

The CSI300 banking sub-index closed up 1 percent. Minsheng Bank rose 3.6 percent and Shanghai Pudong Development Bank Co Ltd 1.2 percent.

Hong Kong's Hang Seng Index ended down 0.3 percent at 21,834.5, though the China Enterprises Index of the top Chinese listings in Hong Kong rose 0.2 percent.

Hong Kong's strongest performer was CITIC Pacific, whose shares gained 13 percent after its parent CITIC Group agreed to inject its main operating arm into the Hong Kong-listed unit. (Reporting by Natalie Thomas; Editing by Richard Borsuk)