The Hang Seng Tech Index fell as much as 3.3% on Monday as the index is on course to the lowest close since November 2022, while the main index dropped 2% in the morning session.
The technology sector remains vulnerable in the Hong Kong stock market as capital out flow continues, while investors also remain cautious as they are waiting for the final regulation from Beijing on the gaming industry.
Late last year, Beijing released a draft with a wide range of regulations and restrictions aimed at curbing online spending and rewards in video games, such as log-in rewards or first-time-spending rewards.
After the release, a $80 billion rout in market value in a single day forced the authorities to reconsider their move on curbing the gaming industry.
Local media reported that regulators have heard the concerns and opinions raised by all related parties. They added that they will do more research and revise the draft. It was reported that the wording of sections in the draft regarding the rewards could be changed.
The crackdown on gaming industry by Chinese authorities began in 2021 when Beijing announced a new rule to limit play time of kids under 18 years old and suspended approvals of new games for about eight months. The government said that it was concerned about gaming addiction and the learning ability of their youth.
