Asian stock markets fell on Tuesday after the slowdown in economic activity in China and Beijing's new regulations on the private sector.
While the stock markets in China fell, the service sector in the country also contracted for the first time since March last year, as the delta variance increased. The Hong Kong stock market, on the other hand, declined with the decline in technology companies after the restrictions imposed by China on video game companies.
While the service PMI for August in China was 47.5, falling below 50 for the first time since March 2020, the market expectation was that the index would be 52. Manufacturing PMI in China came in at 50.1, in line with expectations.
Japan's Topix Index fell 0.3 percent, while South Korea's Kospi Index followed a flat course. The Hong Kong Hang Seng Index fell 1.6 percent, while the China Shanghai Composite Index fell 0.8 percent.
New restriction on the game industry in China
China's relevant regulators have announced a new set of stringent regulations on the country's gaming industry, including limiting the number of hours underage children can play.
According to Xinhua's report, online game providers will only be able to provide services to minors for one hour on Friday, Saturday and Sunday. You will also be allowed to play for only one hour a day during the holidays. It was stated that the new rules were introduced to protect the physical and mental health of children.
The new rules attracted attention as a new part of the Chinese government's policy of repression against technology companies in the country. Tencent Holdings Ltd., China's largest gaming company, had implemented similar restrictions.
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