Chinese stocks fell again on concerns that Tencent could be targeted by regulators.
(ticker: 700.Hong Kong) slumped after an article published in a state-controlled publication accused it and other gaming companies”spiritual opiumShares of Tencent were down 6.1% at 6:19 a.m. EST.
fell 0.5% on Monday, while Hong Kong’s
The Hang Seng index fell 0.2%. However, US exchange-traded funds focused on Chinese equities were hit harder. The
KraneShares CSI China Internet ETF
(KWEB) fell 2.4% in pre-market trading, while the
iShares MSCI China ETF
(MCHI) was down 1%, and the
iShares China Large Cap ETF
(FXI) was down 0.7%.
Such a sale seems like an obvious response, given the blow to US-listed Chinese stocks in recent weeks as China cracked down on companies like
(DIDI) and have moved to for-profit educational companies such as
Tal Educational Group
New Eastern Education and Technology Group
(EDU) to become non-profit organizations.
However, not everyone is equally concerned. “We believe that the market has overreacted to the ‘catchy title’ article published by the Economic Information Daily on Aug. 3, calling for greater scrutiny of protections to prevent underage users’ addiction to online games. take,” writes Alicia Yap, citing steps companies like Tencent and
(NTES) had already taken measures to limit, among other things, the playing of games by minors. “[It] it is understandable that any true or false news can cause panic in the market. We believe that certain unwarranted sell-offs could increase buying opportunities.”
One investor’s buying opportunity is another’s falling knife.
Write to Ben Levisohn at firstname.lastname@example.org