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Hong Kong shares fall, led by Tencent
April 7, 2014 / 4:50 AM / 3 years ago

Hong Kong shares fall, led by Tencent

* HSI -0.6 pct, H-shares +0.3 pct

* Tencent shares slip 4.4 pct on Wall Street weakness

* Macau gaming stocks fall on profit taking (Updates to midday)

By Alice Woodhouse

HONG KONG, April 7 (Reuters) - Hong Kong shares fell on Monday, dragged by index heavyweight Tencent as the Internet giant tracked losses in technology firms on global markets.

Mainland China was shut on Monday for a public holiday and will resume trading on Tuesday.

By midday, the Hang Seng Index was down 0.6 percent at 22,376.43 points to its lowest since April 1. The China Enterprises Index of the top Chinese listings in Hong Kong rose 0.3 percent.

Global markets were affected by losses in the tech sector on Monday, following a recent selloff in Internet-related stocks on Wall Street.

Shares in Tencent dropped 4.4 percent to a six-week low, while software firm Kingsoft Corp Ltd fell 5.3 percent.

Jackson Wong, vice president for equity sales at Tanrich Securities, said two factors accounted for Tencent’s weakness.

“One would be from the Nasdaq weakness, it significantly affects Tencent’s movement. Secondly, since they announced their earnings the stock has turned pretty weak because they didn’t beat the estimates, they were just within the range of expectations,” he said.

Macau casino stocks fell on profit taking following gambling revenue figures released last week. Galaxy Entertainment Group Ltd slipped 4.3 percent to a one-week low, while Sands China Ltd fell 3.7 percent.

Wong said funds are rotating into traditional sectors including banks and infrastructure-related stocks from technology, in the expectation that the Chinese government will roll out infrastructure policies to support growth.

Editing by Simon Cameron-Moore

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