In this Aug 19, 2020 file photo, people wearing protective masks walk past signage for Hong Kong Exchanges & Clearing Ltd (HKEX) displayed at the Exchange Square complex in Hong Kong, China. (ROY LIU / BLOOMBERG)
HONG KONG – Hong Kong stocks fell over 4 percent on Monday, weighed down by huge losses in the education and tech sectors.
The benchmark Hang Seng Index notched its lowest close since Dec 22, 2020, down 4.13 percent.
HK stocks of New Oriental Education & Technology Group Inc plummeted more than 47 percent after the company’s US shares lost over half of their value on Friday
The Hang Seng Tech index slumped 6.57 percent, nearly erasing all gains since its inception in July 2020.
Internet conglomerate Tencent slumped 7.72 percent, and online life services platform Meituan tumbled 13.76 percent. E-commerce giant Alibaba dropped 6.38 percent.
The education sector also slid after the State Council released over the weekend a range of strict measures on tutoring courses in a bid to ease the excessive burden on students in primary and middle schools.
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The sell-off sent Hong Kong-listed Scholar Education Group shares crashing more than 45 percent. Hong Kong stocks of New Oriental Education & Technology Group Inc plummeted more than 47 percent after the company’s US shares lost over half of their value on Friday. The company provides tutoring and test preparation services in China.
The CSI Education Index, another sub-index tracking education and related sectors, ended down 9.61 percent at its lowest close in 16 months.
With inputs from Agencies