Hong Kong shares ended the session lower on Friday, dragged lower by Chinese e-commerce giant Alibaba after it reported disappointing earnings.
** At the close, the benchmark Hang Seng index was down 1.07% to 25049.97 points, while the Hang Seng China Enterprises Index lost 0.7%, to 8,970.67 points.
** Analysts attributed the fall to disappointing earnings from Chinese e-commerce giant Alibaba
,, which heightened worries about Beijing’s broad regulatory crackdown and slowing growth in the world’s second-biggest economy.
** Shares of Alibaba
dropped by 10.71% to HK$139.3 at the close after the company forecast annual revenue to grow at its slowest pace since its 2014 stock market debut as second-quarter results missed expectations due to slowing consumption, increasing competition and a regulatory crackdown.
** “Asian equities are facing turbulence as a confluence of powerful headwinds is building -- a slowing China, higher commodity prices at the wrong time of the business cycle, and a mild rebound in household demand,” said Sanjay Mathur, chief economist for Southeast Asia and India at ANZ.
** Broad market losses were somewhat limited by gains in the property sector on Friday afternoon, with an index gauging real estate firms bouncing 0.52% at the close, as some market participants were discussing possible policy easing for the battered property industry.
** China’s property sector, a major driver of economic growth, has weakened sharply this year as Beijing cracks down on speculation to lower financial risks.