Hong Kong: Stocks rise as banks, property shares gain; Alibaba weighs on tech sector

[HONG KONG] Hong Kong's Hang Seng Index rose on Monday, helped by a rebound in banking and property shares, as signs of slowing economic growth in China fanned hopes of fresh policy easing.

Tech shares fell, dragged down by Alibaba, which was rocked by sexual assault allegation.

The Hang Seng index rose 0.4 per cent, to 26,283.40, while the China Enterprises Index gained 0.4 per cent, to 9,313.97.

China's factory gate inflation climbed 9 per cent in July, rising at a faster clip from the previous month and above expectations, adding to strains on an economy losing recovery momentum.

The worrying inflation data, plus the expected slowdown in domestic export growth last month, fuelled expectations of fresh easing from Beijing.

Hong Kong's financial index, dominated by Chinese banking heavyweights, rose 1 per cent. The property index jumped 2.1 per cent.

But the Hang Seng Tech index dropped 0.5 per cent.

Alibaba Group Holding Ltd dropped 2.5 per cent, after the Chinese e-commerce giant said on Sunday it had suspended several staff following an employee's allegations that she was sexually assaulted by her boss and a client.

Chinese food delivery giant Meituan added 3.1 per cent, after it joined a meeting with government regulators on improving safety and labour rights for delivery workers.

REUTERS