Hong Kong Market falls 1.45%

Hong Kong stock market finished session lower on Friday, 23 July 2021, on renewed regulatory concerns after reports that Beijing is planning hefty penalties on Didi Global for listing its shares in the U.S. in June. Meanwhile, selloff also fueled as surge in Delta variant cases clouds global economic recovery outlook.

At closing bell, the benchmark Hang Seng Index dropped 1.45%, or 401.86 points, to 27,321.98. The Hang Seng China Enterprises Index fell 1.67%, or 167.52 points, to 9,839.05.

The sub-index of the Hang Seng tracking the commerce & industry sector fell 1.77%, while the finance sector fell 1.22%, the properties sector shed 0.74%, and the utilities sector fell 0.43%.

 

Shares of Meituan and Alibaba Health Information Technology dropped as China stepped up its scrutiny on illegal practices after putting Didi Chuxing under a cybersecurity review this month. China's market regulator late Thursday published the first batch of anti-competition cases, while rife speculation about online education firms unnerved onshore traders.

shares of Chinese tech firms fell after reports 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.

Chinese education stocks plunged after reports of a government crackdown on the sector that included bans on foreign investment. The reports come as Chinese authorities stepped up restrictions in recent months on the private education industry, and increased scrutiny on domestic companies listing overseas in the U.S.

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