China stock market dynamics
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China’s largest technology stocks are expected to have their worst week in four months, as groups including Alibaba are again under selling pressure due to the latest signs that Beijing’s regulatory authorities are tightening.
The Nasdaq Golden Dragon Index of large Chinese stocks listed in the United States fell more than 5% in New York on Thursday, dragged down by the nearly 7% drop of the e-commerce group Founded by Jack MaThe index has fallen by nearly 10% since Monday, and is expected to record its biggest weekly decline since April.
The sell-off of Chinese technology stocks was caused by Beijing’s wide-ranging regulation of the industry, including gamble And financial technology, the index has fallen by nearly 53% from its peak in February.Tens of billions of dollars have gone from Wealth of the rich Including Alibaba founder and Tencent’s Ma Huateng.
On Friday, Chinese media reported that Beijing will continue Expand its regulatory activitiesIn Hong Kong, after the People’s Daily, the mouthpiece of the Chinese Communist Party, called for greater regulation of the use of online platforms to dispense medicines, healthcare stocks plummeted. It said that the safety of online prescription drugs “has become a topic of social concern.”
Ping An Medical fell 10.4%, while Ali Health Information Technology fell nearly 5%. Another Hang Seng Technology Index, which measures Chinese technology stocks, fell 1.6%.
In the Chinese mainland market, the local news media Caijing reported that an executive from an unnamed spirits producer would attend a regulatory meeting to oversee the industry, and liquor manufacturers dumped them one after another.In recent weeks, China has also tried to solve a Drinking heavily after get off work.
Kweichow Moutai, No. 1 in the world Largest Liquor Company, A drop of more than 3%, while rival Luzhou Laojiao fell as much as 6.4%. The Shanghai and Shenzhen 300 Index of large stocks in Shanghai and Shenzhen stocks fell 1.3%.
Morgan Stanley’s analysts warned that China’s technology group’s recent decline may be due to Investor exit The stock fund of the company focuses on the country’s stocks, “it is difficult to regain a large amount of capital inflow in the short term.”
After concerns about China’s economic slowdown caused iron ore futures to fall by more than 7% on Thursday, China’s bulk commodity market stabilized. Friday’s iron ore contract rose slightly by 0.1%.
“Obviously, we are seeing a further slowdown in the Chinese economy,” said Mansoor Mohi-uddin, chief economist at the Bank of Singapore.He added that apart from the Covid-19 outbreak Delta variants of ChinaEconomic data such as retail sales and industrial production this week were weaker than expected, while credit growth was “unexpectedly slow.”
Elsewhere in Asia, Japan’s Topix Index and South Korea’s Kospi both fell 0.5% due to concerns about slowing global economic growth and tightening of monetary policy in the United States.Overnight, Wall Street’s S&P 500 Index get 0.1%.
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