The sell-off surged, the Hang Seng index lost more than 8%


The wave of sell-off on the Hong Kong stock market continued to rise, causing the Hang Seng index to lose a total of more than 8% in the first two trading days of the week.

The Hang Seng Index fell 4.22% on the trading day of July 27. File photo: AFP

Hong Kong’s Hang Seng Index this afternoon dropped another 5% and closed the trading day on July 27 with a decrease of 4.22% to 25,086.43 points.

Thus, in just the first two trading days of the week, the Hang Seng index “evaporated” a total of more than 8%. The reason given by analysts is that regulations related to China’s private education and technology sectors are weighing on investor sentiment. Previously, Hang Seng lost more than 4% on the trading day of July 26.

Shares of major Chinese technology companies listed in Hong Kong continue to be “bloodbath”. Chinese tech giant Tencent today plummeted 8.98% while Alibaba shares slipped 6.35% and Meituan shares dropped 17.66%. Collectively, the Hang Seng Tech index dropped 7.97% to 6,249.65 points.

China’s antitrust regulator yesterday announced guidelines for food delivery platforms, including a requirement to pay delivery workers at least equal to the minimum wage in China. local. The move is said to hurt the profits of delivery platforms such as Alibaba’s Meituan and Ele.me.

Mainland China stock market also fell sharply today. The Shanghai Composite Index lost 2.49% to 3,381.18 while the Shenzhen Component fell 3.672% to 14,093.64 points.

On the same day, China’s National Bureau of Statistics announced that profits of industrial manufacturing companies in June increased by 20% year-on-year. This increase is much lower with the increase of 36.4% recorded in May.

Meanwhile, other major stock markets in Asia – Pacific recorded positive developments. In Japan, the Nikkei 225 closed up 0.49% to 27,970.22 points, while the Topix index gained 0.64% to 1,938.04 points.

In South Korea, the Kospi index edged up 0.24% on the day to 3,232.53 points, while Australia’s S&P/ASX 200 index gained 0.5% to 7,431.40. Overall, the MSCI Asia-Pacific index (excluding Japan) dropped 1.98%.

On the contrary, US stocks last night had a sublime session with all three major indexes closing at record points. The S&P 500 index rose 0.24% to 4,422.30 points, while the Dow Jones Industrial Average rose 82.76 points to 35,144.31. The tech-biased Nasdaq Composite Index rose to 14,840.71 points.

In the currency market, the US dollar index against other major currencies fell to 92.759, from above 92.8 yesterday. The Japanese yen turned to rise to 110.12 JPY against USD, compared with 110.5 JPY/USD yesterday. In contrast, the Australian dollar declined from 1 AUD to 0.7388 USD to 1 AUD/0.734 USD.

Oil prices traded in Asia this afternoon fluctuated mixed. Brent oil futures prices rose slightly to $74.53 per barrel while US crude oil futures slid to $71.85 per barrel.