China stocks fall on regulatory crackdown; Hong Kong drifts lower

SHANGHAI: China stocks slipped on Tuesday as regulators tightened measures against speculation and abnormal trading practices, while Hong Kong shares drifted lower on regional market weakness.

• China’s blue-chip CSI300 Index dropped 0.5% by the lunch break, while the Shanghai Composite Index lost 0.3%.
• In Hong Kong, Hang Seng Index edged 0.04% lower.
• China’s securities watchdog fined a prominent stock commentator 83 million yuan ($11.92 million) for market manipulation and imposed a three-year trading ban, in its latest crackdown against market misbehaviours.
• Over the past week, Shanghai and Shenzhen stock exchanges each took regulatory measures against hundreds of abnormal trading practices such price pumping and false orders.
• The bourses also launched probes into several listed companies over allegedly misleading statements.
• The measures reflect regulators’ intention to slow the pace of market gains. Last week, China tightened margin financing requirements after the Shanghai market hit decade-highs in record turnover.
• On the macro front, China left its benchmark lending rates unchanged on Tuesday as expected, after the economy hit its growth target of 5% in 2025.
• In Hong Kong, sentiment was doused by weak Asian markets as a resurgence of trade-war concerns curbed risk appetite.
• Chinese sectors that had been targeted by speculators, including satellite, defence and rare earth fell the most on Tuesday.
• Once high-flying tech-related sectors, including artificial intelligence, cloud computing and biotech, also saw sharp corrections.
• But real estate stocks jumped as bearish December data fuelled hopes for fresh government support.
• In Hong Kong, tech stocks and raw material plays were among the biggest decliners. ‑Reuters