Last Updated on 29/07/2021 by Sanskriti
Days of severe selling in Chinese equities have left the country’s two major indexes among Asia-worst-performing Pacific markets. The CSI 300, which monitors the biggest equities listed in mainland China, has declined 8.83 percent this year as of Tuesday’s closure of regional markets. The Hang Seng index in Hong Kong also suffered significant losses, plunging 7.88 percent in the same time frame.
An analyst at Bespoke Investment Group wrote in a note that, “There hasn’t been a single two-day decline (for the Hang Seng index) since the Financial Crisis that has exceeded the magnitude of the last two days.”
Like the Shanghai composite and Shenzhen component, other big mainland indexes are among the few major Asia-Pacific markets that have lost territory this year. The MSCI Emerging Markets index, on the other hand, has finished the year in the red. As of June 30, Chinese internet behemoths Tencent, Alibaba, and Meituan were among the index’s top five components.
The drops come as Chinese officials continue to tighten their grip on industries ranging from technology to education and food distribution. The heightened monitoring alarmed investors, prompting many to flee the country.
On Wednesday morning trade, Hong Kong and China markets were uneven, with both failing to recoup from recent losses.
All major Chinese indices, including the Hang Seng, were positive for the year at the start of the second half. As of the end of June, the Shenzhen component had gained 4.78 percent, while the CSI 300 index had gained only 0.24 percent. The Hang Seng index in Hong Kong climbed 5.86 percent in the same time period.
