Hong Kong: Stocks fall, China Telecom drops on probe

[HONG KONG] Hong Kong shares dipped at the open on Monday in thin trade, while Chinese mainland stocks eked out gains after lawmakers agreed to start overhauling how companies list.

The Hang Seng Index lost 0.32 per cent, or 71.36 points, to 22,066.77.

Shares in China Telecom dropped as much as three per cent after news its head was under investigation for "severe disciplinary violations", the latest high-profile target in a corruption crackdown.

Financial markets in the US and Europe are closed on Monday for the Christmas holiday.

Chinese shares rose slightly, however, after lawmakers approved reforms to the system for initial public offerings, dealers said.

The benchmark Shanghai Composite Index added 0.22 per cent, or 7.86 points, to 3,635.77.

The Shenzhen Composite Index, which tracks stocks on China's second exchange, gained 0.35 per cent, or 8.24 points, to 2,367.97.

AFP