China Shares Fall amid Renewed Regulatory Fears
Chinese tech firms listed in the city tumbled after Bloomberg News reported that Beijing is considering harsh penalties on ride-hailing giant Didi. The penalties being planned range from a fine likely bigger than the record $2.8 billion Alibaba paid earlier this year to even a forced delisting after Didi’s IPO last month.
Shares of Didi stateside plunged more than 11% on Thursday. Earlier in July, the firm was forced to stop signing up new users and also had its app removed from Chinese app stores due to alleged collection and use of personal data.
That development came as Beijing continues its months-long crackdown on China’s tech behemoths, targeting issues from anti-trust to data regulations.
Hong Kong Stocks Fall as Tech, Education and Property Shares Drop
Hong Kong stocks fell on Friday, dragged down by technology, education and property shares, as deepening concerns over Beijing’s tighter regulations weighed on sentiment.
The Hang Seng Tech Index slumped nearly 3% to the lowest closing level since October, 2020.
New Oriental Education & Technology Group Inc’s Hong Kong-traded shares plunged 41% to a record low, amid deepening concerns over China’s crackdown on tutoring businesses.
China will crack down on after-school tutoring businesses and ban listings of tutoring institutions, according to a soft copy of government document circulating on social media. Reuters was unable to immediately verify its authenticity.
Hong Kong-listed property shares also fell as worries over tough regulations linger. Chinese local governments should strictly control financing for property developers, including bank loans and improve land pricing mechanisms, state television quoted Vice Premier Han Zheng as saying on Thursday.
Australian Shares End at Record High on Healthcare, Tech Boost
Australian shares closed at a record high after a choppy afternoon trade on Friday, as gains in healthcare and tech stocks slightly outweighed losses in financial and energy firms.
Healthcare stocks added 1.3% and led gains on the benchmark index. The closing marked a fourth positive finish in the past five sessions.
Australian tech stocks followed suit, firming nearly 1% on strong cues from their Wall Street peers overnight.