Tech Turmoil in Hong Kong: E-commerce Giants Stir Market Dynamics

Hong Kong's market took a hit on Thursday, spearheaded by a drop in tech stocks, as investors grew concerned over increasing competition among e-commerce giants, threatening to compress profit margins. In contrast, China stocks saw a modest rise.

Alibaba led the declines in Hong Kong with a nearly 4% drop following its announcement of a substantial subsidy initiative for merchants and consumers. Analysts from UBS remarked that this move indicates stronger competition within China's e-commerce arena.

Amidst these developments, healthcare shares saw gains due to Beijing bolstering policy support for innovative drugs, while geopolitical tensions hinted at easing with the U.S. clearing ethane exports to China. This complex dynamic reflects the volatile interplay of market factors in the region.

(With inputs from agencies.)