HK stocks fall the most in 6 weeks on Beijing's gaming crackdown, Evergrande woes

** Confidence is further dented by a South China Morning Post report on Thursdday that China has temporarily suspended approval for all new online games in a bid to curb the gaming addiction among young people. ** Property stocks also dropped, as debt-laden developer Evergrande's shares slumped as much as 10.5% to a fresh six-year low.


Reuters | Hong Kong | Updated: 09-09-2021 14:18 IST | Created: 09-09-2021 14:05 IST
HK stocks fall the most in 6 weeks on Beijing's gaming crackdown, Evergrande woes
Representative Image Image Credit: Piqsels
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Hong Kong stocks fell the most in six weeks on Thursday, with tech shares tumbling on China's latest crackdown on the gaming industry and China Evergrande Group plunging amid signs of growing financial woes. ** Sentiment is not aided by signals on Wednesday from several Federal Reserve policymakers that U.S. monetary tapering could still start this year despite a slowdown in jobs growth in August and the COVID-19 resurgence.

** The Hang Seng index fell 2.3%, to 25,716.00, the biggest one-day percentage drop since July 27. The China Enterprises Index lost 2.8%. ** Technology stocks witnessed savage sell-offs, with the Hang Seng Tech Index slumping 4.5%.

** Gaming and media stocks including Tencent Holdings and NetEase tanked after authorities summoned them and other gaming firms to ensure they implemented new rules for the sector. ** Confidence is further dented by a South China Morning Post report on Thursday that China has temporarily suspended approval for all new online games in a bid to curb the gaming addiction among young people.

** Property stocks also dropped, as debt-laden developer Evergrande's shares slumped as much as 10.5% to a fresh six-year low. ** Concerns over Evergrande's financial health deepened amid a slew of rating downgrades, and after financial intelligence provider, REDD reported on Wednesday that the company plans to suspend interest payments due on loans to two banks on Sept. 21.

** But resources shares jumped over 2%, trucking the trend, after data showing China's factory-gate inflation hit a 13-year high in August, driven by roaring raw materials prices. ** An index tracking energy shares also ended the session in positive territory.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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