The Hang Seng Index dropped 1.7 per cent to 16,340.41 at the close, extending the decline for the week to 2.7 per cent. The Tech Index slumped 4.4 per cent, capping the biggest loss since February 10. The Shanghai Composite Index fell 0.1 per cent.
Tencent plunged 12 per cent to HK$274, the biggest drop since October 2008, while NetEase crashed 25 per cent to HK$122, the most on record. The two command about 9.1 per cent weighting in the Hang Seng Index and 14 per cent in the Tech Index. Elsewhere, Bilibili lost 9.7 per cent to HK$80.30 while Kuaishou slipped 7.2 per cent to HK$50.10.
“The market is panicking and people do not know where the policy direction is,” said Dickie Wong, executive director at Kingston Securities. “The regulatory uncertainty has been a drag for the past few years and investor already lacked confidence in the market. The new rules undermined their expectations for recovery.”
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China limits online gaming time for young people to 3 hours a week
China limits online gaming time for young people to 3 hours a week
China’s video-game industry, the world’s biggest, is poised to grow 14 per cent to 303 billion yuan (US$42.7 billion) in revenue this year, the highest since data began in 2003, according to the Game Publishing Committee of the China Audio-Video and Digital Publishing Association.
“The new rules will shatter the business models for companies that rely on mobile and internet games,” said Wang Chen, a partner at Xufunds Investment Management in Shanghai.
Chinese stocks’ misery extends for a record third straight year
Chinese stocks’ misery extends for a record third straight year
Today’s losses compounded a year of misery for local shares. The Hang Seng Index has declined 17 per cent this year, making it the worst performer among major world benchmarks. Global funds stayed bearish on China’s outlook, even as valuation at 5.6 times earnings multiple ranks as the cheapest among them, according to Bloomberg data.
Limiting the losses, BOC Hong Kong gained 0.7 per cent to HK$20.55 and peer HSBC rose 0.9 per cent to HK$61.80.
China to see healthy and sustainable growth in the year ahead: PBOC chief
China to see healthy and sustainable growth in the year ahead: PBOC chief
“Lower deposit rates should help alleviate pressures on net interest margins and lay the groundwork for the PBOC to cut its policy lending rates in January, which have been left unchanged for the past four months,” said Lu Ting, chief China economist at Nomura in Hong Kong. “If these cuts materialise, it would signal Beijing has become increasingly concerned about the downward pressure on growth.”
Four companies made their debuts in Hong Kong today. Gold producer Persistence Resources added 1.8 per cent HK$0.56, while drug maker HighTide Therapeutics rallied 7.7 per cent to HK$12.38. Logistics provider FAR International surged 11 per cent to HK$1 and tea producer Pu’er Lancang Ancient Tea tumbled 19 per cent to HK$8.70.
In Shanghai, Hsino Tower Group, which makes steel towers for power queues, surged 341 per cent to 7.49 yuan on its first day of trading.
Major Asian markets were mixed. Japan’s Nikkei 225 climbed 0.1 per cent, while South Korea’s Kospi and Australia’s S&P/ASX 200 both slipped less than 0.1 per cent.
Additional reporting by Xinmei Shen
