Stock indexes in Hong Kong and mainland China lost $ 560 million in the week due to the continuation of Beijing control of various industries. New legislative constraints have undermined the confidence of investors, writes Reuters.
Hong Kong Stock Exchange Hang Seng Index showed the biggest weekly drop since the peak of the pandemic, from March 2020, losing 5.8 percent. Since February Hang Seng was down by 48 per cent. Shanghai Composite Index of Shanghai Stock Exchange fell 1.1 percent, while shares of “blue chips” – 1.9 percent
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Most of the action of spirits producers have suffered in Shanghai. In early August, China’s state-run media have come out with criticism of the illegal sale of alcohol and cigarettes to adolescents. Shares of tobacco company Huabao International Holdings collapsed by more than 11 percent. Soon, nearly six percent decreased quotations largest producer of spirits Kweichow Moutai. The fall came after news that the industry representatives will meet with regulatory authorities to discuss the situation on the market.
The biggest sales have been in the technology sector, which is particularly loved by foreign investors. Flight intensified after the State Administration for Market Regulation (SAMR) has released draft rules aimed at combating unfair competition on the Internet. It is expected that the platform will be obliged to open the negative reviews and ban redirect customers to your site, while those purchased goods elsewhere.
The cost of shares of Alibaba second consecutive day, renewed its historical minimum. By the close of trading, they were traded in 157.9 HK dollars (20.27 dollars) per share. “Almost every day, we get negative news, so it seems that the end is not visible,” – said a portfolio manager in the company Nuvest Capital Dave Van. He believes that from the Chinese securities companies should stay away.