China Delivers Another Blow

China Delivers Another Blow

With listed ed-tech companies no longer allowed to acquire or invest in education firms teaching school subjects, shares of US-listed Chinese companies suffered their biggest two-day fall since the financial crisis in 2008

With listed ed-tech companies no longer allowed to acquire or invest in education firms teaching school subjects, shares of US-listed Chinese companies suffered their biggest two-day fall since the financial crisis in 2008

The US benchmark indices Dow Jones and Nasdaq ended the fortnight on a flat note, gaining a paltry 0.11 per cent and 0.16 per cent, respectively. The S & P 500 held the fort and rose 0.47 per cent to close at 4,432.35. The Federal Reserve’s monetary policy panel decided to keep interest rates in a range between 0.00 per cent and 0.25 per cent at its latest meeting. The Federal Reserve Chair also hinted that they are likely to reduce their monthly purchases of mortgage-backed securities and treasuries simultaneously when it is time to pare back its support for the US economy.

The GDP of the world’s largest economy grew by 6.5 per cent during the April to June quarter and currently stands above the pre-pandemic levels as mass roll out of vaccinations and government stimulus have managed to revive consumer spending spree. US consumer and producer level inflation data to be announced in the coming week are the sought after talk of the town and hence investors should keep a close eye on the same. Hong Kong’s benchmark index Hang Seng plummeted 3.80 per cent during the fortnight as a draft policy from the Chinese government is asking companies that offer tutoring on the school curriculum to go non-profit.

These education-tech platforms will neither be allowed to raise (domestic or foreign) capital nor go public. Listed companies will also no longer be allowed to acquire or invest in education firms teaching school subjects. Shares of US-listed Chinese companies suffered their biggest two-day fall since the financial crisis in 2008.

London Stock Exchange’s benchmark FTSE 100 climbed by 1.49 per cent underpinned by upbeat earnings result and a positive revision of the UK services Purchasing Managers’ Index (PMI). The DAX and CAC 40 saw gains of 0.49 per cent and 3.72 per cent, a few points shy of recording their new all-time highs.

Japan’s Nikkei lost 1.49 per cent as virus worries continue to loom large while China’s Shanghai Composite index rose by 0.49 per cent over the last two weeks. The market capitalisation of South Korea’s benchmark stock index Kospi touched an all-time high with a series of bumper initial public offerings (IPOs), according to data released by the country’s bourse operator. The accumulated market valuation of listed firms on the main Kospi market came to USD 2.04 trillion. The OMX Copenhagen 20 and S & P | ASX 200 jumped by 4.66 per cent each. The SET and Strait Times indices ascended 0.19 per cent and 0.64 per cent, respectively.

" The Federal Reserve’s monetary policy panel decided to keep interest rates in a range between 0.00 per cent and 0.25 per cent at its latest meeting. "

 

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