The crackdown of the Chinese authorities on the tech sector resulted in Hong Kong’s stock market crash. Perhaps, Beijing wants to punish Hong Kong where protests against the policy of the Communist Party of China have been lasting for several months. The reason for the collapse was the fall in the stock prices of Chinese technology companies. The Hang Seng index fell by more than 5%. However, later, it managed to recoup some of its losses. Hence, at the end of the trading session, it rose by 4.22%. The following day the index decreased sharply by 8%. The shares of major Chinese technology companies traded on Hang Seng, including such giants as telecommunications corporation Tencent and marketplace Alibaba Group suffered a lot. They lost 8.98% and 6.35% in two days. Chinese companies targeting foreign investors widely trade on the Stock Exchange of Hong Kong. It is possible that investors may place shares avoiding scrutiny of the watchdog. However, Beijing has recently decided to get tough on it in response to months of protests by Hong Kong residents against the Chinese extradition law. This law was rejected. So, China’s government tightened the current national security law and then decided to punish the protesters with money.
