Hong Kong shares edged higher by midday after reversing early losses of more than 340 points, though gains were capped as worries over potential tax changes for China’s tech sector pressured heavyweight stocks.
The benchmark Hang Seng Index rose 54 points, or 0.21 percent, to 26,830 by the midday break, after briefly sliding more than 1 percent earlier in the session. Turnover reached HK$195.2 billion.
The China Enterprises Index slipped 0.22 percent to 9,060, while the Hang Seng Tech Index fell 1.31 percent to 5,453.
Large-cap technology stocks weakened amid concerns that China could raise value-added tax rates for the sector. Alibaba (9988) dropped 1.78 percent, Tencent (0700) slid 3.09 percent, Meituan (3690) fell 1.69 percent, and Xiaomi (1810) lost 1.14 percent. Kuaishou Technology (1024) tumbled 4.35 percent, the worst performer among blue chips, while Baidu (9888) declined 3.54 percent. JD.com (9618) slipped 0.45 percent after touching a 52-week low of HK$107.8.
Gold and silver stocks rebounded as precious metal prices firmed. China Gold International Resources (2099) rose 1.59 percent, Lingbao Gold (3330) gained 3.77 percent, Zijin Mining (2899) climbed 2.02 percent, and Zhaojin Mining Industry (1818) added 1.14 percent. Shandong Gold Mining (1787) edged up 0.05 percent, while Chifeng Jilong Gold Mining (6693) advanced 1.94 percent. China Silver (0815) rose 3.13 percent.
Chinese energy drink maker Eastroc Beverage (9980) made its Hong Kong debut, with shares trading flat at HK$248 by midday, unchanged from the offer price.
In mainland China, shares were modestly higher by midday. The Shanghai Composite Index rose 0.38 percent to 4,031, while the Shenzhen Component Index gained 0.93 percent to 13,952 after briefly climbing back above the 14,000 level earlier in the session.
