SHANGHAI, Aug 3 (Reuters) - Hong Kong stocks fell on
Tuesday, with tech shares leading the declines, as index
heavyweight Tencent Holdings Ltd slumped over 10%
after a media report stoked concerns over tighter regulation on
** China stocks were unchanged, as a jump in healthcare stocks
amid fresh COVID-19 fears offset falls in banks and developers.
** The Hang Seng index dropped 1.0% to 25,987.16 at the
end of the morning session, while the Hong Kong China
Enterprises Index lost 1.1%, to 9,233.11.
** The CSI300 index rose 0.2%, to 4,945.12, while the
Shanghai Composite Index was unchanged at 3,464.31.
** The Hang Seng Tech Index fell 2.4%.
** Tencent was set to see its sharpest fall in a decade after a
Chinese state media outlet branded online video games "spiritual
opium", worrying investors that the sector may be next in
** Hong Kong-listed shares of rival NetEase Inc
slumped as much as 15.7%, while those of game developer XD Inc
and mobile gaming company GMGE Technology Group Ltd
** In China, healthcare stocks surged as COVID-19
vaccine and diagnosis stocks jumped amid signs of the virus
spreading into more Chinese cities.
** But property stocks in both markets weakened further.
** China Evergrande Group, the country's most-indebted
developer, slumped nearly 5%, after Moody's downgraded the
company and its affiliates, and a unit of Leo Group
sued Evergrande for failing to pay fees for advertisement.
** "With the lack of signs of a rebound in economic
fundamentals, a slowdown in domestic credit, and no further
monetary easing policy, the stock market's risk appetite is
unlikely to increase in the short run," UBS Securities China
Rates Market analyst Mary Xia wrote.
(Reporting by Shanghai Newsroom; editing by Uttaresh.V)