Shares of Chinese companies working in the field of technology and education collapsed in Hong Kong
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Shares of Chinese companies operating in the high-tech and education sectors fell at auction in Hong Kong on July 26. RBC writes about this.
At the low of the session, the Hang Seng index declined by 3.6%, the Hang Seng Tech index of technology companies lost 7.09%, reaching the lowest level since September 2020. The CSI education index collapsed by 9.73%.
It is noted that investors are selling securities due to the pressure exerted by the Chinese authorities on companies in the technology and education sectors. Regulators paid close attention to bigtech last year.
At the end of last week, it became known that Chinese regulators decided to restrict the activities of private educational companies — one of the fastest growing business areas in the country. Educational platforms may be banned from conducting IPOs and attracting investments.
The shares of the Chinese educational platform New Oriental Education & Technology Group at auction in Hong Kong on Monday fell by 47%, Scholar Education Group - by 48%, educational service Koolearn Technology - by 34.8%, China Beststudy Education - by 42.5%.
People's Republic of China tightened control over technology companies trading on foreign platforms. Four days later, the Cyberspace Administration of China (CAC) proposed rules prohibiting companies with more than 1 million users from entering foreign exchanges without official permission. The goal of regulators is to take control of huge amounts of data accumulated by companies.
- In November 2020, they stopped the IPO of Alibaba's daughter, fintech Ant Group, just a few days before the placement, and then announced the restructuring of Ant. One of the latest reasons for investors' concern was the investigation launched by the Chinese authorities regarding the Didi taxi service just a day after the company's successful IPO held on the New York Stock Exchange.