Over $551 Billion Wiped from Hang Seng Index Following Beijing’s Crackdown

China’s Hang Seng Tech Index has recorded more than $551 billion in market value loss since it last peaked in February at 59% due to the industry crackdown.

HSI is down -6.57%.

• Analysts have stated that the issue of privacy and the concern of a possible reduction in medium-term earnings has spurred the ongoing clampdown.
• The index plummeted this month by 11% after the Chinese regulators banned new users from the Didi app following a controversial IPO.
• The index fell by 5.4% on Monday, with the sell-off of private education firms’ shares as tough regulations threaten the $100 billion industry.
• Despite the plunge, ETFs tracking the Hang Seng Index have recorded an inflow this year
• Hang Seng Tech Index was commissioned a year ago and it tracks 30 tech companies.