China Stocks tumble amid regulatory woes

The Mainland China share market finished session steep lower on Tuesday, 17 August 2021, as worries about the impact of the fast-spreading Delta coronavirus variant and signs of economic slowdown in China weighed on sentiment. Meanwhile, selloff pressure intensified as authorities in Beijing ramp up their crackdown on some of the nation's largest companies and the US securities market watchdog cautioned investors about buying Chinese companies listed in the US.

At closing bell, the benchmark Shanghai Composite Index was down 2%, or 70.37 points, to 3,446.98. The Shenzhen Composite Index, which tracks stocks on China's second exchange, declined 2.52%, or 61.86 points, to 2,392.49. The blue-chip CSI300 index was down 2.1%, or 103.67 points, to 4,837.40.

 

The retreat in the Mainland market came after China's market regulator issued draft rules aimed at stopping unfair competition on the internet. China's State Administration for Market Regulation issued a set of draft rules aimed at preventing unfair online competition. The announcement came just after reports that China would increase scrutiny of the entertainment sector and what it called idol culture. The moves are the latest in a series of announcements that have shaken the confidence of investors as Chinese regulators attempt to rein in the country's tech titans.

CURRENCY NEWS: China yuan was down against the dollar on Tuesday, inline with softer mid-point fixing by central bank. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.4765 per dollar, 48 pips or 0.07% weaker than the previous fix of 6.4717. In the spot market, onshore yuan was changing hands at 6.4796 at around late afternoon, 46 pips weaker than the previous late session close.

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