China's Meituan (MPNGF) Plunges 17.6% to Push Hang Seng Index to 8-Month Lows as Heavy Selling Continues

July 27, 2021 6:15 AM EDT

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Asian investors have continued with heavy selling of Chinese tech stocks as Beijing ramps up efforts to increase scrutiny and control of tech’s biggest players.

Hong Kong’s Hang Seng index fell the most in a day since May last year to now push total weekly losses to over 8%. Yesterday, the index fell just a bit over 4%.

As a result, today’s low of 24,748 is the lowest point for 2021 and since the beginning of November last year.

"The market seems to be uncertain whether there will be more policy changes for fintech, social media platforms, delivery platforms and ride hailing platforms," said Iris Pang, chief economist for Greater China at ING.

"Each has their own issue and faces different regulatory actions, so the market is looking for 'which technology subsector will be next?'”

Tencent (OTC: TCEHY) was down almost 9%, Alibaba (NYSE: BABA) 6.35%, with Meituan (OTC: MPNGF) leading the selloff (-17.66%). The broader Hang Seng Tech index fell almost 8%.

On the other hand, all three major US indexes trade near the record highs while investors are focused on Q2 earnings reports and the Federal Reserve's monetary policy meeting.

"It's profits and the Fed. The next couple of days are going to be monumental as everyone tries to figure out how strong corporate fundamentals are at the moment and in what context that is happening in terms of the economic outlook and policy settings," said Kyle Rodda, market analyst at IG Markets.

S&P 500 futures are down 0.3% in pre-open Tuesday.

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