Hong Kong Sinks In Mixed Asian Trade As China Rattles Confidence

Asian markets were mixed Tuesday with confidence at a premium after the previous day's sell-off, with Hong Kong suffering another hefty loss as investors kept a wary eye on China following its latest crackdown on a range of industries

Hong Kong, (UrduPoint / Pakistan Point News - 27th Jul, 2021 ) :Asian markets were mixed Tuesday with confidence at a premium after the previous day's sell-off, with Hong Kong suffering another hefty loss as investors kept a wary eye on China following its latest crackdown on a range of industries.

The announcement of new regulations on the tutorial sector -- which has decimated private education firms -- along with more moves against tech firms and fresh rules for property and food delivery companies has traders worrying where Beijing will strike next, analysts said.

That comes against a backdrop of rising concerns about the fast-spreading Delta Covid variant and the slow rollout of vaccines, with some governments having to impose new lockdowns or other containment measures.

Hong Kong sank more than five percent to extended Monday's drop of more than four percent after investors were spooked by Beijing's latest move to tighten its grip on the economy.

At the weekend it said it would prevent firms that teach school curriculum from making a profit, raising capital or going public, making them virtually uninvestable.

Officials also looked to wind in tech giant Tencent, while unveiling new rules to protect drivers in the delivery business.

In Hong Kong, firms caught in the regulatory sweep fell further, though the losses for education firms were not as stark as on Monday.

London, Paris and Frankfurt all fell at the open.

CMB International Securities strategist Daniel So added: "The key concern now is whether regulators will do more and expand the crackdown to other sectors.

"The regulatory concerns will be the key overhang to the market for the second half." - Key figures around 0720 GMT - Tokyo - Nikkei 225: UP 0.5 percent at 27,970.22 (close) Hong Kong - Hang Seng Index: DOWN 5.32 percent at 24,798.07 Shanghai - Composite: DOWN 2.5 percent at 3,381.18 London - FTSE 100: DOWN 0.7 percent at 6,973.77 Dollar/yen: DOWN at 110.15 Yen from 110.37 yen at 2125 GMT Pound/dollar: UP at $1.3817 from $1.3815 Euro/dollar: DOWN at $1.1791 from $1.1802 Euro/pound: DOWN at 85.34 pence from 85.41 pence West Texas Intermediate: UP 0.1 percent at $71.95 per barrelBrent North Sea crude: UP 0.2 percent at $74.65 per barrelNew York - Dow: UP 0.2 percent at 35,144.31 (close)