According to Hang Seng, falling shares of Chinese technology companies have led to a stock market crash in Hong Kong, which has been rebelling against Beijing’s policies for months.
The main index Hang Seng fell by more than five percent, but then recovered part of its decline. As a result, losses at the end of the trading session were limited to 4.22%. In the last two days, the decline is eight percent.
The main reason for the decline was the sale of shares of major Chinese technology companies traded on Hang Seng, including the telecommunications corporation Tencent and the Alibaba Group. The first fell by 8.98% in two days, and the second – by 6.35 percent.
The sale comes amid the announcement of new requirements for Chinese food delivery services. They will now be required to ensure that employees receive at least the minimum wage in a region. Meituan and Ele.me, part of the Alibaba Group, are expected to be affected.
The Hong Kong Stock Exchange has traditionally been used by Chinese companies targeting Western audiences, as it allows them to list stocks with fewer regulatory requirements and attract a wider range of foreign investors.
However, the stock market has recently felt the tightening of Beijing’s financial sector policies (especially initial public offering procedures), including after months of protests by Hong Kong residents against China’s extradition law. It was rejected, but protests led to the adoption of an even stricter national security law.
Translation and editing: BLITZ
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