CHINA BROUGHT THE EXCHANGE OF ITS RESTING CITY

 


 

The fall in shares of Chinese technology companies led to the collapse of the Hong Kong stock exchange, which rebelled against Beijing's policies for several months, follows from the data of the Hang Seng site.

The main Hang Seng index fell by more than five percent, however, then won back part of the fall. As a result, losses at the end of the trading session were limited to 4.22 percent. Over the past two days, the decline was eight percent.

 

The main cause of the drop was the sale of shares in large Chinese technology businesses that trade on the Hang Seng, such as Tencent, a telecoms company, and Alibaba Group, an online marketplace. The quotes of the first fell by 8.98 percent in two days, the second - by 6.35 percent.

 

The sale comes amid the announcement of new requirements for Chinese food delivery services. Now they will be obliged to guarantee employees wages not lower than the minimum wage in a particular region. The innovation should affect the services Meituan and Ele.me, which are part of the Alibaba Group.

 

The Hong Kong Exchange has traditionally been used by Chinese companies targeting Western audiences, as it allows for public offerings with fewer regulatory requirements and attracts a wider range of foreign investors.

 

Recently, however, the site has experienced a tightening of Beijing's policy in the financial sector (in particular, the IPO procedure), including after months of protests by Hong Kong residents against the Chinese extradition law. It was rejected, but protests led to the adoption of an even tougher national security law.

 

#Joseph Marc Blumenthal

 

 

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