Hong Kong shares fell 0.79 percent Friday following a heavy sell-off on Wall Street, while Chinese inflation data for March came in below forecasts. The benchmark Hang Seng Index slipped 183.32 points to 23,003.64 on turnover of HK$96.34 billion (US $12.43 billion).
The index gave up about half the gains enjoyed on Thursday in response to news of plans to allow cross-trading between Hong Kong and Shanghai's bourses, the latest part of China's move to open up its capital markets.
Regional investors were given a dour lead from Wall Street, where the Nasdaq slumped 3.10 percent on fears that big name technology stocks such as Facebook and Netflix are overvalued.
The rout spread to other stocks, with New York's two other main indexes also hit. The Dow shed 1.62 percent and the S&P 500 was down 2.09 percent
Selling pressure was increased after China said inflation came in at 2.4 percent in March, up from 2.0 percent in February but well off the 3.5 percent annual target set by Beijing. It was also marginally off the median forecast of 2.5 percent in a survey of 16 economists by Dow Jones Newswires.
On Thursday Beijing said imports and exports fell sharply last month, adding fuel to concerns about the world's number two economy.
China Mobile fell 0.67 percent to HK$74.60, energy giant CNOOC was unchanged at HK$12.80, Cathay Pacific Airways sank 1.55 percent to HK$15.26 and Henderson Land Development slipped 0.85 percent to HK$46.90.
Internet giant Tencent tumbled 6.75 percent to HK$525.00 and insurer Ping An lost 4.95 percent to HK61.40.
However, Hong Kong Exchange surged 11.54 percent to HK$146 in response to the tie-up with Shanghai. In China the benchmark Shanghai Composite Index slid 0.18 percent, or 3.76 points, to 2,130.54 on turnover of 111.6 billion yuan ($18.0 billion). The index gained 3.48 percent for the week. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.42 percent, or 4.60 points, to 1,088.10 on turnover of 99.4 billion yuan. It rose 1.88 percent this week.
"The (inflation) figures showed a continued economic slowdown. But in the meantime, the government is also stepping up efforts to provide policy support," BOC International analyst Shen Jun told AFP. Cement producers and technology firms led the declines.
Anhui Conch Cement lost 3.46 percent to 18.44 yuan and Gansu Qilianshan Cement fell 1.78 percent to 7.19 yuan.
On the Shenzhen market, Beijing Join-Cheer Software dropped 5.43 percent to 18.11 yuan while Wangsu Science & Technology tumbled 5.18 percent to 98.80 yuan.
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