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Weakness Extends On Large Tech Losses, Post Gaming Curbs

HONG KONG STOCKS

Hong Kong equities continue to track lower post the lunch break. The aggregate HSI is off over 1%, while the tech sub index has slumped 3.3%, although this is up from session lows (-4.5%).

  • This is close to YTD lows for the index. This follows headlines that the China regulator will aim to curb online gaming use (see this BBG link). NetEase dropped by a record 28%, while Tencent was down 16% at one stage, the most since 2008.
  • After the break, mainland shares are paring earlier gains.
  • The spill over to CNH has proven to be fairly limited at this stage. The pair got above 7.1600, but we now back at 7.1580.

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