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With Chinese stocks top of mind, here is a look at two indices focused on China. A tale of two indices?

The first index, the SSE Composite, is a stock market index of all stocks that are traded on the Shanghai Stock Exchange.

The second index, the NASDAQ Golden Dragon China, is composed of stocks which are traded in the US, but where the majority of business is conducted within China.

Weston NakamuraVisionary
Real Vision Exchange Manager, Programming and Community Engagement

HK & China Equities Hammered

EdTech got hit hard with Chinese Characteristics today in Asia trading - imagine owning shares of a publicly traded capital enterprise, and the government suddenly says “you’re now a non-profit.” Chinese gov clamped down on EdTech industry, citing education inequality among other things - they’re no longer permitted to raise capital or IPO or open new learning centers or hold weekend classes. Or make money, essentially.

Koolearn Technology -34%, New Oriental Education -47% today. The “no profits allowed” for education came last Friday when the sector saw it’s first round of sell offs -40% before heading into the additional -40% today.

Tencent had its worst day in over a decade as the gov came down on their unfair exclusivity for music licensing (also known as music licensing) -7%. @Ralph Humphrey on this story this weekend.

The China & HK indices took a huge hit as a result. CSI300 -3.2%, China A-Shares -5%. HK’s Hang Seng Index -4.1% worst in 14 months. The US-China squaring off not helping either. @Christopher Moir ← bearish HSI call continues working fantastically well.

For those who may be unfamiliar - These may be obscure to western individual (and some institutional) investors - but these are the largest equity markets outside US. Hang Seng index is Tencent, Alibaba etc as well as names like HSBC.

HSI below 2020 & 2019 year end close levels, melting down led by HSI Tech.

HSI vs 10Y UST Yield

CSI300 (largest stocks in Shenzhen and Shanghai) plummets, while copper rises... (More)

It looks like a Cultural Revolution of Tech is happening before our eyes.

China's Tencent ordered to end exclusive music contracts

JOE McDONALD, AP Business Writer

July 23, 2021 Updated: July 23, 2021 8:43 p.m.

BEIJING (AP) — Internet giant Tencent was ordered by regulators to end exclusive contracts with music copyright holders, adding to increased enforcement of anti-monopoly and other rules as Beijing tightens control over booming online industries.

Tencent controls more than 80% of “exclusive music library resources” following its 2016 acquisition of China Music Group, the State Administration for Market Regulation said Saturday. It said that gives Tencent the ability to get better terms than competitors receive or to limit the ability of rivals to enter the market.

Tencent Holdings Ltd., best known abroad for its WeChat messaging service, has a sprawling business empire that includes games, music and video. It is among the world’s 10 most valuable publicly traded companies, with a stock market value of $680 billion.

In order to “restore market competition,” Tencent must end exclusive music copyright contracts within 30 days, the market regulator said in a statement. The company is barred from requiring providers to give better terms than competitors receive.

Tencent promised on its social media account to “conscientiously abide by the decision.”

Regulators are stepping up enforcement of anti-monopoly, data security, financial and other rules against Tencent, e-commerce giant Alibaba Group and other companies that dominate entertainment, retail and other industries.

The enforcement has hurt the stock market value of some companies. Shares in ride-hailing service Didi Global Inc., which made its... (More)

I'm your boss's, boss's, boss's, boss's, boss.  I'm not sure how I feel about this post. Nevertheless, I found War Stories from a Crypto Journalist very interesting.  The very next thing I'm likely to watch is Understanding China’s Crackdown: The Didi IPO Fiasco.