Hong Kong’s Hang Seng index drops 3% as China tech and education shares plunge

Shares in Hong Kong dropped sharply in Monday afternoon trade, as Chinese tech and education stocks plunged on regulatory pressure and a summit between China and the United States got off to an acrimonious start. The broader Asia-Pacific markets were mixed, with mainland Chinese stocks also falling. The Hang Seng index in Hong Kong fell 3.24%, leading losses in the region.

Hong Kong-listed shares of Chinese tech giant Tencent slipped 7.61% in Monday afternoon trade. Alibaba also dropped 5.17% while Meituan fell 9.15%. The Hang Seng Tech index plunged 6.58%. Those losses came after China’s antitrust regulator ordered Tencent to give up its exclusive music licensing rights and slapped a fine on it for anti-competitive behavior, marking yet another development in Beijing’s ongoing crackdown on its domestic internet titans. Shares of private education firms listed in Hong Kong also tumbled as Chinese authorities also stepped up restrictions on the sector. New Oriental Education & Technology Group, Koolearn Technology and China Beststudy Education Group all saw their shares plummeting more than 30% each.

In South Korea, the second highest level of virus restrictions will be applied to non-capital areas starting Tuesday, local agency Yonhap reported. Elsewhere, Tokyo’s daily coronavirus tally has exceeded 1,000 for six days in a row, according to Kyodo News. Indonesia on Sunday also extended its Covid restrictions by a week, according to Reuters. The country has been among multiple Southeast Asian nations that have been grappling with a resurgence in infections.

Hong Kong’s Hang Seng index drops 3% as China tech and education shares plunge, CNBC, Jul 26