The summer of stock market turmoil in China: a timeline


(Bloomberg) – The overhaul of tutoring companies in China has triggered a few volatile weeks for both onshore and Hong Kong stock markets, leaving investors on edge.

After heavy losses, traders are looking for what regulators might target next as Beijing tightens its grip on a range of sectors from private education to digital games, from e-cigarettes to real estate.

Here’s a look at the key events since July 23:

August 9 – Chipmaker slide

Chipmakers are collapsing after state media published a comment that regulators will show no tolerance to crack down on speculators in the chip market. China’s largest chip foundry, Semiconductor Manufacturing International Corp., fell more than 5% in Shanghai, while in Hong Kong, Hua Hong Semiconductor Ltd. fell 5.7%, its worst drop in nearly three months. Will Semiconductor Co. fell 5.7%, while Hubei Tech Semiconductors Co. fell 3.3%.

August 6 – And milk

Infant formula manufacturers join a growing list of stocks affected by regulatory risk. China Feihe Ltd. fall 9.3%, after Xinhua reported that some experts are concerned about marketing that prompts mothers to choose powdered milk over breastfeeding. contents.

August 5 – Vaping and alcohol

Liquor and e-cigarette stocks drop as fearful investors pick up on a slew of state media reports that are seen as potentially foreshadowing the next targets of tighter regulation. Shares of liquor maker Kweichow Moutai Co. fell 2.8% while those of its counterpart Wuliangye Yibin Co. fell 3.8%. The tobacco vaping stocks of Smoore International Holdings Ltd. drop to 7.8% in Hong Kong. A number of biopharmaceutical companies are also dropping their daily limits after reports of the harms of improper use of human growth hormone injections.

August 4 – Healthy Nation

Equity investors are getting some relief as shares of sneaker makers and other sports companies surge, pushed higher by Beijing’s latest policy agenda for a healthy nation. Li Ning Co. grew 5.7% while Anta Sports Products Ltd. increases by 4.7%.

August 3 – Watch out for the players

Tencent Holdings Ltd. tumbles to 11%, after Chinese state media called video games “spiritual opium” and said the country should remain alert to online gaming harms and regulate the industry as soon as possible.

July 30 – Dirt

The benchmark CSI 300 closed lower, marking the worst week since the end of February. The country’s biggest economic planner is calling on chemical fertilizer manufacturers not to over-accumulate fertilizer, push up prices and spread misleading information. The government will also temporarily halt fertilizer exports to ensure domestic supply. Trust companies are prohibited by the national banking and insurance regulator from establishing new direct non-financial units.

July 28 – Spam

China is ordering Tencent and 13 other developers to rectify pop-up issues in their apps, adding to a widespread crackdown on the country’s tech industry. Tencent shares fell more than 5% before recovering to close higher.

July 27 – No more pressure

Hong Kong’s Hang Seng Index recorded its biggest two-day loss since 2008, as shockwaves from the escalating crackdown in Beijing continue to ripple through the markets. The CSI 300 index drops 3.5% amid a wave of panic selling.

July 26 – Eat and live

Investors have their first chance to react to China’s confirmation of the overhaul of the tutoring industry, with the CSI 300 index falling nearly 5%. In Hong Kong, the Hang Seng index closed down 4.1%. tumble after the Housing Ministry issued a statement saying it aims to “significantly improve order” in the market and crack down on violations.

July 24 – Non-profit

China is unveiling a radical overhaul of its $ 100 billion education technology sector, banning companies that teach the curriculum from making a profit, raising capital, or going public. Tencent is ordered to relinquish exclusive rights to music streaming and is fined 500,000 yuan ($ 77,295), becoming the latest Chinese internet giant to be brought under control by regulators.

July 23 – Record declines

Bloomberg reports that China is considering asking companies that offer tutoring on the school curriculum to become a nonprofit, amid a broad set of constraints that threaten to decimate the education technology industry from $ 100 billion. New Oriental Education & Technology Group Inc fell a record 41% in Hong Kong, while Koolearn Technology Holding Ltd. closing down 28%. Scholar Education Group drops 29%.

(Updates with Monday moves)

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