Hong Kong Stocks Slide Most in 3 Weeks With Tech Firms Leading

(Bloomberg) -- Hong Kong stocks fell the most in more than three weeks, with tech shares leading losses.

The benchmark Hang Seng Index dropped 2.1% to 24,158.54 at the close. Alibaba Group Holding Ltd. slid 4.3%, the most since July, after Reuters reported the U.S. is seeking to blacklist its affiliate Ant Group. Tencent Holdings Ltd. and Xiaomi Corp. fell at least 3.4%, among the worst performances.

The losses come after firms tracked by the Hang Seng Tech Index jumped 66% this year through Wednesday. The industry has been a focus of tensions between China and the U.S., with the Trump administration seeking to curtail the influence of Chinese apps such as Tencent’s WeChat super app.

Thursday’s drop came despite a rare bit of good news for the city in its battle against the virus pandemic. Hong Kong and Singapore agreed to create a travel bubble that exempts people from the cities from quarantine. Singaporean Transport Minister Ong Ye Kung said he hopes the bubble will start in “weeks.”

That news sent shares of Cathay Pacific Airways Ltd. up 6.1%, the most since Aug. 25.

©2020 Bloomberg L.P.

With assistance from Bloomberg