The Mainland China share market stumbled on Monday, 26 July 2021, as risk aversion selloff continued amid concerns over Beijing's crackdowns on industries from tech to real estate and education firms. Meanwhile, tensions between Washington and Beijing also weighed on investor sentiment, as a high-level meeting between the two economic powerhouses got off to an acrimonious start.
At closing bell, the benchmark Shanghai Composite Index retreated 2.34%, or 82.95 points, to 3,467.44. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 2.28%, or 56.33 points, to 2,411.81. The blue-chip CSI300 index declined 3.22%, or 163.93 points, to 4,925.30.
The market tumult was sparked by a move by Beijing over the weekend to ban academic tuition groups from making profits, raising capital or going public. Beijing's crackdown on education companies raised fears of more regulatory tightening across the world's second-biggest economy.
Beijing has launched successive crackdowns on fast-growing sectors over the past year.
Regulators in November pulled the plug on the record $37bn initial public offering of Ant Group at the last minute. That was followed by a broader clampdown on technology groups, including an anti-monopoly investigation into Ant affiliate Alibaba and other big ecommerce platforms. Shortly after Didi's New York IPO this month, new rules were introduced governing listings abroad for Chinese companies whose data-gathering activity covers more than 1m users.
CURRENCY NEWS: China yuan fell to near one-week low against the dollar on Monday, inline with lower mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.4763 per dollar, 113 pips or 0.17% weaker than the previous fix of 6.4650. In the spot market, onshore yuan CNY=CFXS was changing hands at 6.4841, 34 pips softer than the previous late session close.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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