Hong Kong Market falls on regulatory concerns

Hong Kong stock market finished session down on Thursday, 05 August 2021, as risk aversion selloff triggered on tracking decline in Mainland A-share market after a flare-up in Delta-variant infections forced Chinese authorities to impose stricter travel curbs. Meanwhile, selloff pressure intensified amid fears new tightening measures after reports aim at the video game sector, calling for higher taxes on the industry.

At closing bell, the benchmark Hang Seng Index declined 0.84%, or 221.86 points, to 26,204.69. The Hang Seng China Enterprises Index fell 1.3%, or 122.82 points, to 9,296.43.

The sub-index of the Hang Seng tracking the commerce & industry sector fell 1.14%, the utilities sector fell 1.61%, the finance sector fell 0.13% and the properties sector fell 1.64%.

Chinese government has re-imposed restrictions on movements after more than 500 cases linked to the highly infectious virus strain were reported in half of the nation's provinces. It limited train services and subway usages in at least 144 regions including Beijing to control the spread.

The Chinese Communist Party's top decision-making body at its latest meeting mentioned terms like anti-monopoly and curbing disorderly expansion by capital, portending a regulatory storm that would crush tech stocks in the coming months.

Media reports stated that gaming firms should not have preferential tax measures that were introduced to encourage the development of the domestic software sector as the gaming industry is more developed now.

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