Chinese Tech Shares Slip, Snapping Three-Day Rally; Liquor Falls

Bloomberg News, Bloomberg News

A public screen displays the Shenzhen Stock Exchange and the Hang Seng Index figures in Shanghai, China, on Wednesday, Aug. 18, 2021. President Xi Jinping said China must pursue "common prosperity," in which wealth is shared by all people, as a key feature of a modern economy, while also curbing financial risks. Photographer: Qilai Shen/Bloomberg , Bloomberg

(Bloomberg) -- Chinese technology shares slipped, snapping a three-day rally as earnings from a number of firms missed investor targets.

The Hang Seng Tech Index fell 1.3% as of 10:35 a.m. in Hong Kong. The index was weighed down by Kuaishou Technology and AAC Technologies Holdings Inc., which both fell by at least 9% after missing estimates.

The continued drop comes after the government’s shock ban last month of profits at tutoring companies, which triggered a selloff of about $1 trillion in Chinese shares listed globally. Investors are concerned that even with the huge loss in market value seen already, fragile sentiment leaves the technology sector vulnerable to further losses.

Meanwhile, China’s CSI 300 Index fell by as much as 1.2%, its first decline in four days, as investors offloaded shares of liquor makers including Kweichow Moutai Co., which dropped 3.3%. The baijiu giant is stressing product price stability ahead of holidays in coming months, according to a media report.

The liquor sector drop is more of a “temporary pullback” following recent gains, said Capital Securities analyst Gu Xiangjun.