HONG KONG, July 26 — Markets in Asia mostly fell this morning, led by Hong Kong after Beijing at the weekend further cracked down on China’s tech firms, while education companies were hammered as the government unveiled sweeping reforms of the sector.
Investors have a packed agenda of possible market-moving events this week including the Federal Reserve’s latest policy meeting, US economic growth data, and earnings from some of the world’s biggest firms such as Apple and Amazon. Hong Kong sank more than three per cent with education companies battered after China on Saturday unveiled reforms that will massively change the way they do business.
JP Morgan Chase analysts said it was uncertain whether firms could continue to be traded on stock markets under the new regime, adding that “in our view, this makes these stocks virtually un-investable”.New Oriental Education & Technology Group crashed 38 per cent in Hong Kong, having dived a similar amount Friday as speculation about the move circulated on social media. Its New York-listed shares collapsed 54 per cent.
Tencent bought a majority stake in rival China Music Group in 2016, effectively controlling more than 80 per cent of exclusively held music streaming rights domestically, the State Administration for Market Regulation said in a statement.In other markets, Shanghai dropped more than two per cent, as did Manila, while there were also losses in Singapore, Seoul, Mumbai, Wellington and Taipei. But Tokyo rose one per cent as traders returned from a four-day weekend break, while Jakarta also edged up.