Hang Seng drops more than 2% as gaming and education stocks plunge

Hong Kong stocks fell more than 2% on 9/9 trading day, while most of Asia – Pacific markets were also in the red.

Hong Kong’s Hang Seng Index fell 2.3% in trading day 9/9. Photo: AFP

Shares of two Chinese technology companies listed in Hong Kong, Tencent and Netease, “evaporated” 8.48% and 11.03%, respectively, on September 9 after regulatory pressure re-emerged.

Chinese state media reported that Tencent and Netease were on a list of game development companies summoned by Chinese authorities to a meeting. One of the main issues discussed at the meeting was asking these companies to limit gaming time for children.

Gaming stocks shook on the Hong Kong Stock Exchange after the South China Morning Post reported on the afternoon of September 9 that the Chinese government had temporarily stopped approving all new online games in the country.

Meanwhile, shares of Hong Kong-listed private education companies also fell sharply following China’s September 8 ban on private tutoring, including the opening of private tutors. online classes or tutoring at unregistered locations.

Specifically, shares of New Oriental Education & Technology ended September 9 with a drop of 5.45%, while smaller rival Koolearn Technology slipped 4.66%.

Overall, Hong Kong’s Hang Seng index closed down 2.3% at 25,716 points.

Mainland China stocks were better after the previous two quiet sessions. The Shanghai Composite index rose 0.49% to 3,693.13 points, while the Shenzhen Component index rose slightly to 14,698.53 points.

China’s consumer price index rose 0.8 percent year-on-year in August, still below the average 1 percent increase forecast by experts with Reuters. Meanwhile, China’s producer price index beat forecasts, rising 9.5% from a year ago.

In Japan, the Nikkei 225 closed down 0.57% to 30,08.19 points, while the Topix index dropped 0.71% to 2,064.93 points. South Korea’s Kospi index lost 1.53% and ended the trading day with 3,114.70 points.

Australian stocks were also in the red with the S&P/ASX 200 index down 2% to close at 7,369.50 points. Overall, the MSCI Asia-Pacific region (excluding Japan) slid as much as 1.26%.

On Wall Street, the Dow Jones and S&P 500 last night suffered a third consecutive day of declines, while the Nasdaq posted its first loss in the last five sessions. Specifically, the Dow Jones lost 68.93 points to 35,031.07 while the S&P 500 dropped 0.13% to 4,514.07 points. The Nasdaq Composite also fell 0.57% to 15,286.64 points.

In the currency market, the greenback on September 9 strengthened when the US dollar index against a basket of other strong currencies rose to 92.684, after reaching 92.4 at the beginning of the week.

The Japanese yen inched up and traded at 110 JPY to 1 USD, compared to 110.4 JPY/USD yesterday. On the contrary, the Australian dollar weakened to 1 AUD to 0.7368 USD.

Oil prices traded by Asian hours this afternoon increased slightly. Brent crude oil futures were up 0.15% to trade at $72.71 a barrel, while US crude futures inched up 0.1% to $69.34 a barrel.