(Yicai Global) Dec. 24 -- Tech and real estate stocks led the Hong Kong exchange lower this morning in the last trading before Christmas, following declines in the US at the end of last week.
The Hang Seng Index was off 0.49 percent at 25,626.59 points, with 10 out of 11 stocks declining. Tech companies slid 1.7 percent, while shares of raw materials firms fell 1.3 percent.
Analysts believe that the sharp drop in US stocks had a negative impact on Asian markets today, including Hong Kong, China Securities Journal reported today.
The S&P 500 lost 7.1 percent last week, making it the worst weekly performance for the benchmark since 2011, and the Nasdaq Composite Index entered bear territory. The US market's drop was prompted by a partial government shutdown, an increase in lending costs, and rumors of US President Donald Trump's intention to fire Federal Reserve Chairman Jerome Powell.
Hong Kong-listed new economy stocks tumbled today. Digital business conglomerate Meituan Dianping [HKG:3690] fell 5.65 percent, while smartphone and wearables maker Xiaomi [HKG:1810] slid 3.8 percent. Tech blue-chip Tencent Holdings [HKG:0700] fell 1.46 percent.
Property stocks also gave up ground. China Vanke [HKG:2202] slid 3.56 percent, while Soho China [HKG 0410] and Sunac China [HKG:1918] dropped 2.75 percent. China Jinmao [HKG:0817] declined 2.56 percent, Zhongjun Group Holdings [HKG:1966.HK] fell 2.46 percent, and Ronshine China Holdings [HKG:3301] lost 2.45 percent.
Beijing's real estate policy involving zero tolerance of speculation has not changed, and downside risks for the property sector continue, investment firm China International Capital said in its latest research report. Houses are "for living, not for speculation," President Xi Jinping said in a speech to the National People's Congress in October last year.
Hong Kong will pause trading for two and a half days because of the Christmas holidays. The exchange will open again on Dec. 27.
Editor: Emmi Laine