China regulation

The Chinese market was hit hard overall today however there were pockets that really got whacked, the education companies front and center after Beijing barred for-profit tutoring in core school subjects and restricted foreign investment in the sector. The move is ultimately designed to make it cheaper to have more kids in China after they recently introduced a three-child policy – Chinese mothers gave birth to just 12 million babies in 2020 which is not enough for the powers that be in Beijing. The CSI Education Index was last down ~7.5% today and the Hang Seng Tech index was off ~4%. That index which holds the largest China domiciled tech companies is now down over 30% while the Nasdaq is hitting all time highs. We have some exposure here in Tencent (700 HK), Alibaba (BABA US) & more recently JD.com (JD US).

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Shenzhen CSI 300 (China)

LAST UPDATED 26/07/2021 16:48

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Shenzhen CSI 300 (China)

LAST UPDATED 26/07/2021 16:48