On Wednesday, the Chinese stock market suffered a setback as the country’s economic data and the Evergrande non-payment issue came to the forefront. This strained the already pressurized market, which just came out from a long regulatory crackdown.
Stock Index Goes Down
The primary stock index of the country, the Hang Seng China Enterprises Index, was down by 1.6%, which is happening for the third day.
Out of all the companies that performed poorly, Country Garden Holdings Co. stood the lowest as the news of Evergrande defaulting its debt payments created ripples. The payments are slated for next week clearance. The Evergrande news dealt a severe blow to the weak equity markets, as authorities imposed further restrictions on Macau casinos. This led to a slip of 23% in gaming shares, a record in the industry.
Investors Worried About the Tech Sector
The declines are due to investors’ apprehension on stricter policies that they anticipate will derail the technology sector, according to CMB International Securities Ltd. strategist Daniel So.
- Ecommerce Stocks: Ecommerce companies also experienced a similar downturn as the country’s retail sales figures plunged in August over fresh covid outbreaks. In this period, the Hang Seng Index slipped 3.1%. Alibaba, Tencent Holdings and Meituan were the most affected.
- Casino Stocks: Following stricter casino rules, Casino stocks faced an $18.4 billion loss, creating history. The world’s largest gambling pub is likely to face more scrutiny on its ownership and operations.
- Gaming Stocks: Meanwhile, China’s official news agency, Xinhua, broke out news on internet protection rules which created ripples in the streaming world. The new draft is for regulating content for kids. Because of this, shares of streaming industry stalwarts like Kuaishou fell by 4.7%
