Not only tech firms, but also healthcare stocks tumble
The Chinese state media outlet has recently put curses on a variety of industries by calling for greater regulations, including video games, private tutoring, and e-cigarette.
The paw is stretching straight into society, rocking the financial market world as well. You think they are just posing, as vulnerable as a paper tiger.
Instead, China is becoming a real ferocious tiger since Xi Jinping took over. It was just this Friday that China passed the new personal data privacy law, taking effect in November.
Being the main targets, Tencent and Alibaba no doubt keep falling. But not only do the tech firms suffer, but healthcare stocks also sink after the People’s Daily called for more regulations of online prescription systems.
Hong Kong stocks hence decline constantly along with these firms listed on HKEx, and the Hang Seng Index just tumbles down to 24,849 points on Friday, hitting the bottom of this year.
Obviously, Xi abandons the old path of Deng Xiaoping’s economic reform and simply intervenes in all different markets he wants to by making doom and gloom prophecies.
Xi loves imposing rules and regulations as if it is in his blood. That actually helps to justify all his actions and punishments as he could always accuse someone of “violating the law” and harming society.
But what to justify those laws and rules? Nothing. Such a discussion is never being put on the table. Like who decides that private tutoring is all detrimental? Or what is the logic behind when CCP accuses firms of infringing on individual’s privacy, while the CCP would keep infringing on it?
Like a tiger mother, the Chinese government is “thoughtful and considerate” to take care of all aspects of your daily life. The tiger-mother CCP now requires higher behavioral control over their people and giving commands, ensuring that they are obedient.
They have a certain arrogance like those parents think, ‘I’m your mother! How would you resist me? I’m always a mother, and you’re always my child. That’s why you have to listen to me!’
Sadly, the old playbook is ripped apart. Under Xi’s ruling, China is now the new game-changer. This time, the CCP is putting social stability and health before shareholders. This scares off investors and businessmen, but they do not care, as long as they can control their grown-up “children.”
Dawna Fung is a freelance writer studying journalism at the University of Hong Kong. She has published her piece in Hong Kong Free Press before. _ ED.