Hong Kong shares end lower, dragged by property, financials and tech

SHANGHAI, Sept 14 (Reuters) – Hong Kong shares closed lower on Tuesday, with real estate and financial stocks falling after China’s most indebted developer warned of a risk of a cross-default, while technology shares extended their losses from the previous session.

** The Hang Seng index fell 1.2%, to 25,502.23, while the China Enterprises index lost 1.7%, to 9,081.73 points.

** China Evergrande Group plunged nearly 12% to its lowest in more than six years, after it warned of a risk of cross-default as real estate sales continued to plunge.

** The developer’s struggles to quickly sell off assets and avert defaults on its massive liabilities are raising the risk of contagion for other privately owned developers, fund managers and analysts said.

** The Hang Seng Property index and the Hang Seng Finance index dropped 2.2% and 1.5%, respectively.

** China Evergrande New Energy Vehicle Group and Evergrande Property Services Group tumbled 24.7% and 12.0%, respectively.

** Technology companies extended their losses from the previous session after Beijing’s latest crackdown, and ended lower 1.4%.

** Bucking the trend, the healthcare sub-index finished up 1.5%, with constituent WuXi Biologics rising 1.8%, the third biggest daily gainer on the Hang Seng index.

** PetroChina Co extended its gains from the previous session and jumped 3.9% to be the biggest daily gainer on the Hang Seng as oil prices remained strong. (Reporting by the Shanghai Newsroom; Editing by Shounak Dasgupta)


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