torsdag 29. juli 2021

Hong Kong Markets Battered as Foreign Investor Confidence Wavers

Shares in major Chinese companies have sustained major losses in Hong Kong recent days following regulatory changes by the ruling Chinese Communist Party (CCP) affecting online food delivery and e-commerce platforms, as well as the private education sector. Hong Kong's Hang Seng Tech Index plummeted by around 10 percent at one point during trading on Tuesday, while the Hang Seng Index lost around eight percent of its value before rebounding by around 1.5 percent on Wednesday.

The Shanghai Composite Index and Shenzhen Component Index fell by around three percent each on Tuesday amid fragile investor confidence following a month-long crackdown by Beijing on the tech sector. Traders fear the latest crackdown on the nation's education, food delivery and property sectors could expand to other industries such as health care, as China looks to tighten its grip on the sector, Caixin Financial reported. It quoted one trader as saying that investors feared a large-scale outflow of foreign capital from Chinese-listed stocks and bonds.