Hong Kong Market declines as Beijing tightens anti-competition rules

Hong Kong stock market finished lower for fourth straight session on Tuesday, 17 August 2021, following decline in Mainland A-share market, 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. Meanwhile, selloff pressure intensified as worries about the impact of the fast-spreading Delta coronavirus variant and signs of economic slowdown in China weighed on sentiments

At closing bell, the benchmark Hang Seng Index fell 1.66%, or 435.59 points, to 25,745.87. The Hang Seng China Enterprises Index dropped 2.24%, or 207.36 points, to 9,057.88.

 

The retreat in the 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.

Meanwhile, market losses deepened further amid jitters about Hong Kong's decision to tighten travel curbs to stem Covid-19 infections unnerved investors, complicating efforts to revive the economy. Hong Kong will tighten entry restrictions for travelers arriving from the United States and 15 other countries beginning Friday, extending the quarantine period to 21 days.

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