Hong Kong shares end weaker, tech sector drags

SHANGHAI, April 4 Fri Apr 4, 2014 4:18am EDT

SHANGHAI, April 4 (Reuters) - Hong Kong shares finished lower on Friday, dragged down by sliding tech shares and a steep fall in Internet giant Tencent Holdings Ltd.

The Hang Seng Index closed down 0.2 percent at 22,510.08, finishing up 2 percent on the week. The China Enterprises Index of the leading offshore Chinese listings in Hong Kong was up 0.2 percent.

Tencent joined the slide in its U.S. listed peers on increasing investor concerns the technology sector is over valued. The stock lost as much as 6.3 percent earlier in the day before finishing down 4 percent.

The company has lost nearly 19 percent over the last 20 days of trading after reaching a peak of HK$646.00 on March 3.

Software company Kingsoft Corp Ltd also saw its share price fall for a second day, losing 4.5 percent after it announced it would seek a U.S. listing for its Security software subsidiary Cheetah Mobile Inc.

H-shares lost most of their morning gains to end the week up slightly, after excitement tailed off over plans to allow mainland investors to buy Hong Kong traded shares via Shanghai.

But shares in Hong Kong Exchanges and Clearing still performed well on the news, closing up 2.9 percent, for its best weekly performance in over 1-1/2 years. (Reporting By Natalie Thomas; Editing by Jacqueline Wong)

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