Intensifying Competition Pressure on Hong Kong Tech Stocks

On Thursday, Hong Kong's stock market experienced a downturn, mainly driven by a decline in tech stocks. Investors are concerned about fierce competition among e-commerce giants impacting profit margins.

Despite the Hang Seng Index closing down by 0.6%, China's market showed positivity with its blue-chip CSI300 Index up 0.6% and the Shanghai Composite Index rising by 0.2%.

Notably, shares of Alibaba plunged nearly 3% after announcing a substantial subsidy program, intensifying competition fears. Analysts from UBS highlighted the implications for the industry. Meanwhile, China's domestic services sector slowed, while healthcare stocks showed significant gains amid increased policy support.

(With inputs from agencies.)