Wednesday, September 29

China tech stocks fall on gaming crackdown but resources shares jump on factory inflation


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SHANGHAI — China stocks are mixed on Thursday, with technology shares dropping on Beijing’s fresh crackdown on gaming, but resources plays surging on accelerating factory inflation.

** The Shanghai Composite Index gained 0.5% to 3,693.13 points, the highest closing level in six months. The blue-chip CSI300 index was little changed at 4,970.01 points.

** Shanghai’s tech-focused STAR Market and Shenzhen’s start-up board ChiNext board fell.

** Gaming and media stocks, including G-bits Network Technology and Perfect World Co tumbled, after authorities summoned gaming firms to ensure they implemented new rules for the sector. The CSI Media index dropped nearly 3%.

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** Stocks seen with links to “Metaverse,” a virtual shared space based on virtual reality technologies, also slumped, after their recent surge raised regulatory eyebrows and prompted state media to warn against investing in them.

** Wondershare Technology and Wahlap Technology both slumped over 10%, while Goertek lost 9%.

** But resources shares jumped to six-year highs after data showing China’s factory gate inflation hit a 13-year high in August, driven by roaring raw materials prices.

** An index tracking energy stocks jumped 5.6% to the highest level in more than three years, while the CSI SWS Coal Index surged over 6%. (Reporting by Shanghai Newsroom; editing by John Stonestreet)



financialpost.com

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