upamfva
Posts 71
|
China Stocks Slip to End Wild Week as Traders Price New Reality
Chinese stocks fell on Friday, rounding off a volatile week for investors struggling to price in Beijing’s tightening regulatory grip after a rout pushed the nation’s key equity index to the brink of a bear market.To get more finance news China, you can visit shine news official website.
The CSI 300 index fell 0.8% on the day and 5.5% for the week, the worst since February. In Hong Kong the Hang Seng Index, which earlier this week saw its biggest two-day loss since 2008, dropped 1.4%. Alibaba Group Holding Ltd. slipped 4.2% while Meituan lost 5.9%. Tencent Holdings Ltd. declined 2.6%.
Investors are grappling with an uncertain regulatory landscape, given the range of industries targeted by the government. From derailing Ant Group’s blockbuster IPO to rules curbing monopolistic practices across the internet space, reducing leverage in the property industry and reforming the tutoring sector, the investor playbook continues to rapidly change. About $1.5 trillion of market value has evaporated in those sectors since February, according to data compiled by Bloomberg.
“It’s the fear of the unknown,” said Justin Tang, head of Asia research at United First Partners. “Market sentiment is on thin ice. Investors probably expected more meat, however they only got bones in respect to details of the Chinese government’s exhortation to calm down.”
This week’s steep stock market declines were triggered by China’s move to ban swathes of its booming tutoring industry from making profits. It was the government’s most extreme step yet to rein in companies it blames for exacerbating inequality, increasing financial risk and challenging the Communist Party’s grip on key segments of the economy.
The ensuing rout was ferocious enough for Beijing to signal its discomfort. State-run media published a series of articles suggesting the selloff was overdone, while the nation’s securities regulator convened a video conference with banking executives to convey the message that education policies were not intended to hurt companies in other industries.
|