Shares of Asian companies fell during the bidding on July 30, and regional paper indices show a record low result for the month from March 2020 and the crisis associated with the introduction of Lockununov writes Reuters.
At the same time, losses on July 30 were quite modest compared to the collapse, which was celebrated last week. Then investors began to sell out shares, faced with the threat of the next tightening of regulatory measures in China. Some stabilization of the situation contributed to statements from Beijing, who tried to calm the market.
The MSCI index for the Asia-Pacific region, with the exception of Japan, fell by 0.84 percent, the loss has reached 6.5 percent. The Nikkei Japanese index lost 1.71 percent, a monthly fall in the last day of trading in July becomes the eleventh in a row.
The Chinese Blue Chips index fell by 0.96 percent, Hong Kong Hang Seng is 1.27 percent, and Hang Seng Tech, which includes representatives of the technological sector, lost more than 17 percent over the week. The Kospi South Korean exchange index per day decreased by 0.94 percent.
“It is clear that investors stunned tightening regulation,” said Michael Frezis Specialist, who believes that the markets will continue to face pressure in the near future. “We expect the technological sector indices will be subject to tests in the short term, but about the medium and long-term we are very optimistic,” he added.
July 23 became aware of China’s intention to seriously tighten for educational companies in the country access to financing. This led to the fact that the shares of these enterprises were cheaper sharply. In parallel, Beijing took another attack on the technological sector, which in the aggregate led to the collapse on the stock exchanges. Then, China’s concerned about the reaction of the markets accepted a number of measures to stabilize the situation, in particular, the addition of additional volumes of liquidity into the financial system.