Most Asian Pacific stocks tilted higher on Monday amid surging coronavirus cases. Japan’s Nikkei 225 index edged higher after the release of Japan’s PMI for July. Australia’s ASX 200 index was at a standstill amid strict lockdown concerns. Hong Kong’s Hang Seng index started the week in the red amid China’s crackdown. Mainland Chinese stocks, Shanghai Composite, as well as Shenzhen Component, also inched lower.
Hong Kong’s Concerns
The Hang Seng index has been on a downward trend amid huge declines in China’s tech stocks. Chinese tech stocks ended their week’s sell-off into the new week. The Hong Stocks sank after the Chinese government unleashed new regulatory tightening against private education.
China issued new rules on the weekend which saw the education sector tumble. China banned off-campus holidays and weekend tutoring. It also halted the approval of new tuition centers.
The clampdown has seen many investors flee amid concerns over China’s tighter grips on data. The underperformance in the index signals regulatory risks for one of the fastest-growing sectors in China’s economy.
Hang Seng Movers
The worst performer in the Hang Seng index was Haidilao International Holding Limited. The restaurant company fell by more than 16.57% in its stock price after jumping to record high last week.
Alibaba Health Information Technology Ltd slipped 9.26% in its stock earnings. Tech stocks have been the worst performers in the index for almost 8 consecutive days.
Wuxi Biologics was also among the laggards in the index. The pharmaceutical company fell 9.86% on Monday after selling a part of the company’s shares and gained $1.3 billion.
Meituan fell 9.18% on Monday. The online delivery company leaped back into the ride-hailing sector after withdrawing two years ago. The company took the opportunity after Didi company was accused of data privacy violations and later, the company’s app was pulled from China’s Apple and Android stores.
Tencent Holdings dipped 7.31% in its stock prices. The Chinese technology conglomerate company was ordered to give up its exclusive music licensing rights by China’s antitrust regulators. The company y was also fined for its anticompetitive behavior.