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SHANGHAI (Reuters) – Chinese stocks fell on Tuesday while Hong Kong’s benchmark index also fell, as tougher COVID-19 measures in the country’s capital rekindled concerns about slowing growth despite Beijing’s promises of additional economic support.

**At the close of trade, the Hong Kong Hang Seng Index was down 357.96 points or 1.75% at 20,112.10. The Hang Seng China Enterprises Index fell 1.98% to 6,883.14.

** The Shanghai Composite Index ended down 2.41% at 3,070.93, posting its biggest decline since April 25.

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** The blue-chip CSI300 index fell 2.34%, its biggest drop since May 6, with its financial sector sub-index down 1.49%, the consumer staples sector down down 1.45%, the real estate index down 0.27% and the health sub-index down 3.7%.

** Tech companies, which have led a market rebound since late April, fell sharply. The CSI Info Tech Index fell 4.23% and Shanghai’s technology-focused STAR50 Index fell 4.73%.

**Shenzhen’s smaller index ended down 3.54% and the start-up board’s ChiNext Composite index fell 3.82%.

** Auto stocks fell less than the broader market, with a sub-index tracking the sector down 1.1%, after China announced it would cut some passenger car purchase taxes by 60 billion yuan.

** The news helped boost Geely Automobile Holdings Ltd, which jumped 3.52% and was the Hang Seng’s top earner.

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**The tax cut is among a number of measures the Chinese cabinet has pledged to support an economy ravaged by widespread COVID-19 outbreaks hampering an already slowing economy.

**Chinese Vice Premier Sun Chunlan called for deeper measures to reduce virus transmission and adhere to the national zero COVID policy during an inspection tour in Beijing.

* China’s daily COVID-19 figures remain closely watched by investors and Beijing reported 99 new infections for the previous day on Monday, the largest daily tally to date in a month-long outbreak.

** Overseas investors were net sellers of A shares on Tuesday, with Refinitiv data showing outflows of more than 6.6 billion yuan ($988.85 million) through the Stock Connect program.

** Across the region, the MSCI Asia ex-Japan stock index was down 1.25%, while Japan’s Nikkei index closed down 0.94%.

** The yuan was quoted at 6.6686 per US dollar at 08:14 GMT, down 0.3% from the previous close of 6.6488.

($1 = 6.6744 Chinese yuan) (Reporting by Andrew Galbraith; Editing by Sherry Jacob-Phillips)



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