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The Hang Seng Tech Index plunged almost 7% early Tuesday, headed for a fifth straight session of declines. Key equities gauges across the region all slumped, with the Hang Seng China Enterprises Index of big Chinese firms in the city sliding more than 4%.
The broad decline tracks a global selloff that intensified after the Federal Reserve hiked rates by 50 basis points last week. China is showing no signs of letup in its stringent Covid Zero policy that’s already hurt businesses, and there are growing indications the damage is rippling through the global economy.
Meantime, Chinese regulators further tightened their grip on the internet industry over the weekend, banning younger users from sending virtual gifts on livestream platforms. The latest action came despite a string of recent promises by the authorities to take a softer stance on the industry, putting investors on edge again.
While Hong Kong’s market was shut for a public holiday on Monday, Chinese Premier Li Keqiang warned of a “complicated and grave” employment situation as Beijing and Shanghai tightened curbs on residents in a bid to contain Covid outbreak. Meantime, BlackRock Inc (NYSE:BLK). jettisoned its bullish stance on China, saying Covid lockdowns jeopardize the nation’s economic growth.
©2022 Bloomberg L.P.
