Hong Kong Stocks falls on worries about China's property sector

Hong Kong stock market finished session lower on Tuesday, 26 October 2021, as risk aversion selloff triggered on fresh worries about China's property sector debt crisis after Modern Land missed a bond payment. Meanwhile, worries over a planned pilot real estate tax scheme also dented sentiment.

At closing bell, the benchmark Hang Seng Index fell 0.36%, or 93.76 points, to 26,038.27. The Hang Seng China Enterprises Index fell 0.67%, or 62.65 points, to 9,259.43.

Property developers shares declined, with China Resources Land and Longfor Group paced losses among Chinese developers, falling 6.7% and 4.3% respectively. Modern Land failed to pay the principal and interest on a US$250 million bond due on October 25. Property stocks were also broadly weaker following Beijing's plan to introduce a property tax programme in more mainland cities.

Shares of Alibaba Health Information tumbled 11% to HK$10.98 after projecting as much as 320 million yuan net loss in the first half to September 30, compared with a 279 million yuan profit a year earlier, on concern about a contagion risk after Modern Land (China) defaulted an offshore bond.

BYD shares jumped 2.8% to HK$311.40 after getting the approval from the Hong Kong stock exchange to spin off its semiconductor unit in Shenzhen.

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