Tuesday, January 18

Growth concerns and China’s tech crackdown hit markets Business

The app logo of the Chinese giant Didi is seen through a magnifying glass on a computer screen

Photograph: Florence Lo / Reuters

Good morning and welcome to our continued coverage of the world economy, financial markets, the eurozone and business.

China’s crackdown on tech companies is hitting markets again today, amid concerns that the global growth rebound may be fading.

Asia’s stock markets have slumped to a six-week low after Beijing sent shockwaves into global financial circles with plans to tighten restrictions on overseas listing of Chinese companies as it subdues its tech giants. to much tighter scrutiny.

From China CSI 300 has fallen more than 1%, while that of Hong Kong Hang seng has fallen 2.75%, contributing to the MSCI index of Asia non-Japan equities falling 1% to its lowest level since the end of May.

An index of tech stocks in Hong Kong (listing several of China’s biggest online giants) fell 3.75% and has now plunged nearly 12% in the past seven sessions.

Tech giants Tencent (-3.75% today) and Alibaba (-3.8%) both have fallen to their lowest levels this year today.

Last night, participate in the shared transport operation I did It fell another 5% in New York, further below last month’s floating price, after plummeting 22% on Tuesday after regulators launched an investigation into allegations of illegally collecting personal data from users.

CNBC He says the proposal to tighten restrictions on foreign listings could disrupt “a $ 2 trillion market loved by some of the largest US investors” and threaten IPO plans.


China is cracking down on domestic companies listed on US exchanges: Here’s what you need to know. https://t.co/Rm5mNG0oUG

July 7, 2021

Beijing State Council It said in a statement Tuesday that the rules of the “foreign listing system for domestic companies” will be updated, while also tightening restrictions on cross-border data flows and security.

China’s market regulator also revealed yesterday It has fined several internet companies for failing to report past M&A deals for approval, another increase in pressure.

Associated Press Explain:

Companies like internet giants Alibaba and Tencent were fined by antitrust regulators on Wednesday in a new measure. to tighten control over its rapidly developing industries.

In 22 cases, the companies were fined 500,000 yuan ($ 75,000) each for shares that included acquiring stakes in other companies that could unduly increase their market power, the State Administration for Market Regulation announced. It said the violators include six companies owned by Alibaba Group, five by Tencent Holding and two by retailer Suning.com.

Kyle rodda from I G says that the crackdown is causing nervousness in the markets:

The Hang Seng took a fair hit today as Hong Kong’s shares remain on the coal front of the Chinese Communist Party’s crackdown on big technology, the private sector, and indeed the region as a whole. That risk will eventually be removed from the market, when the CCP believes it has made its authority clear enough.

But as long as that risky policy persists, it will keep investors on their toes and perhaps away from investing in the region’s tech giants.

Investors also wonder if the rebound in the recovery is fading, after the US services sector experienced a growth slowdown last month.

This has led to a drop in yields (or interest rates) on US government debt, indicating that traders are less concerned about rising inflation forcing monetary policy to tighten.

Do you have
(@ sakiop225)

Treasury yields have slumped to a four-month low as a gauge of U.S. service sector activity faltered, and hedging shorts exacerbated the move.

The 10-year benchmark yield fell as much as eight basis points on Tuesday to print below 1.35%, the lowest level since Feb. 24. pic.twitter.com/lEY9Oz2iXf

July 8, 2021

Minutes from the latest Federal Reserve meeting, released yesterday, show officials had a spirited discussion about whether the economic rebound in the United States would soon be strong enough to justify slowing or reducing its stimulus measures for the era of the pandemic.

Also comes today

The European central bank today publishes the results of a strategy review, which could see a change in its price stability target for the first time in nearly two decades.

The current inflation target “below but close to 2%” could be replaced by a more flexible target, with more room to exceed (although the ECB’s problem has been underestimation inflation).

The ECB is also expected to announce a green shift in its monetary policy, tilting its asset purchase schemes and collateral rules away from high-carbon companies without a plan to reach net zero by 2050.

Bloomberg Explain:

Some officials favored a precise 2% target with flexibility around it, while others preferred a policy closer to the Federal Reserve’s average inflation target.

A key dispute in the climate change talks was whether the ECB should stick to its principle of reflecting the composition of the market when buying bonds, known as “market neutrality.” That was resolved when Bundesbank President Jens Weidmann signaled last month that he could support buying purchases towards greener assets if it means protecting the balance sheet from climate and transition risks.

European central bank

On Thursday at 13:00 CET, we will announce the results of our strategy review.
Watch him live on Twitter from 14:30 CET as president @Lagarde and the vice president of Guindos explain what the result is in a press conference. More information https://t.co/BKFbEcx37D pic.twitter.com/Gx4i1q9hlI

July 7, 2021

The agenda

  • 9.30 a.m. M. BST – UK Economic Activity and Social Change, Real Time Indicators, Published by the Office for National Statistics:
  • Noon BST: the European Central Bank publishes the results of its strategy review
  • 1.30pm BST: Weekly Unemployment Figures in the US
  • 4pm BST: EIA weekly oil inventory data


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