Hong Kong Market falls on regulatory fears on online gaming

Hong Kong stock market finished session lower on Tuesday, 03 August 2021, following decline in Mainland A-share bourses, with online gaming stocks led losses after China's state media branded online gaming "opium" and likened it to a drug.

At closing bell, the benchmark Hang Seng Index declined 0.16%, or 40.98 points, to 26,194.82. The Hang Seng China Enterprises Index fell 0.17%, or 16.22 points, to 9,320.38.

The sub-index of the Hang Seng tracking the commerce & industry sector fell 0.29% and the properties sector fell 0.3%, while the finance sector rose 0.06% and the utilities sector rose 0.04%.

Market risk sentiments dented after the Economic Information Daily, a newspaper of state-run Xinhua, blasted addiction among children to online games, likening them to spiritual opium and electronic drugs and singled out Honour of Kings, Tencent's top-grossing and most popular games.

 

Accusations of spiritual opium sent shares of the companies in the gaming industry tumbling amid fears a new regulatory chapter was about to begin. Gaming operators Tencent Holdings and NetEase tumbled by at least 6%, among the market's worst performers.

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