Friday 33 Business Friday, August 20, 2021 Tech in crosshairs again as Hong Kong stocks tumble ended with more than three percent down HONG KONG: Tech giants led losses in Hong Kong yesterday after gaming titan Tencent warned Beijing would likely expand its crackdown on the sector, while traders were also hit by expecta- tions the Federal Reserve will start tightening monetary policy by the year’s end. The tumbled 2.13 percent, or 550.68 points, to 25,316.33. The Shanghai Composite Index shed 0.57 percent, or 19.73 points, to 3,465.55, but the Composite Index on ’s second exchange added 0.20 percent, or 4.74 points, to 2,417.23. The sell-off in Hong Kong and Shanghai reflected a wider retreat across the world after the Fed released minutes from its July meet- ing showing most board members agree on tapering policy in the next few months as the economy recovers. The move, which analysts suggest could begin in November or December, would begin chipping away at a key pillar of the rally world markets have enjoyed for more than a year. While most markets around Asia were in negative territory, Hong Kong’s problems were exacerbated by renewed fears that Beijing has not finished with its regulatory moves against certain industries, most notably tech. The sector has already had a torrid time this year as leaders look to tighten their grip on firms they consider to have gained too much power, citing antitrust and national security issues. And on Wednesday gaming firm Tencent, China’s biggest company, an- nounced relatively healthy earnings but told investors to prepare for further curbs that will likely further hit business models and earning power. “In the near future, more regulations should be coming,” Pres- ident Martin Lau said. “This should be expected because the reg- ulation has been quite loose over an industry like the internet, considering its size and the importance.” HONG KONG : This photo taken on August 15, 2021 shows a vendor waiting for customers at a stall selling trousers in Hong Kong. —AFP Tencent ended yesterday more than three percent down, while e-commerce behemoth Alibaba, which was the first firm to feel tech firms, Lenovo tanked 5.9 percent and AAC Technologies shed However, there were also sizeable losses in other parts of the Hang the heat of Chinese authorities, fell more than five percent to its three percent. Seng Index, with oil giants slammed by a plunge in oil prices that lowest level since listing in November 2019. “Tencent management noted that there was ‘a lot more to come’ has been caused by demand concerns in light of the spread of the Alibaba’s HK$162.10 end price is only a little more than half on the regulation front across multiple segments from different reg- Delta COVID variant. PetroChina plunged 5.3 percent, CNOOC the record HK$309.40 touched in October last year. Among other ulators. This is clearly not ideal,” said Bernstein analyst Robin Zhu. shed 1.8 percent and dived three percent. — AFP

firm refused to follow the verdict. scale back production in North America, S Korea court orders And earlier this month, the surviving families of Toyota to cut Sept China and Europe from early September. four of the victims asked the court to seize Mit- The Japanese giant’s rivals have also been seizure of Mitsubishi subishi’s bonds in South Korea, Yonhap news agency production by 40% forced to slow or temporarily halt pro- reported. duction due to the chip shortage. The Anyang branch of Suwon District Court or- as virus hits supply Microchips are essential for the elec- assets over dered the seizure of around 850 million won tronics systems of modern cars, and have (US$725,000) worth of bonds the Japanese firm TOKYO: Toyota said yesterday it will been in short supply since the end of last forced labour owns in LS Mtron, a South Korean industrial machin- cut global auto production by 40 percent year. When the pandemic hit, carmakers ery manufacturer, according to the report. in September as the spread of coron- scaled back orders and chipmakers SEOUL: A South Korean court has ordered the The amount covers around 80 to 150 million won avirus in Southeast Asia squeezes its sup- shifted output to consumer electronics as seizure of Mitsubishi’s assets in the country over the ordered to be provided to each of the victims and ply chain. It came after Japan’s Nikkei people splurged on equipment to work Japanese industrial giant’s use of forced labour during covers losses from the delay of payment. daily reported that the global chip short- and relax at home-leaving automakers in World War II, reports said yesterday. “We request Mitsubishi to admit the historical fact age was also behind Toyota’s planned re- a tight situation as demand for vehicles Japan and South Korea are both democracies, mar- and apologise and deliver compensation to the vic- duction in new vehicles. picked up. ket economies and US allies, but their relationship has tims,” Yonhap cited the law firm representing the The world’s largest automaker an- The chip crunch and other virus-re- been strained for decades as a result of Tokyo’s brutal plaintiffs as saying. nounced suspensions in operations at lated supply chain issues had already 1910-45 colonial rule over the Korean peninsula. “If Mitsubishi continues to refuse to follow court multiple Japanese plants next month due caused several short suspensions at Toy- Around 780,000 Koreans were conscripted into orders, we will collect its bonds from LS Mtron based to a “parts shortage resulting from the ota’s Japanese factories. The company re- forced labour by Japan during the 35-year occupa- on the collection order,” it added. spread of COVID-19 in Southeast Asia”. ported a record first-quarter net profit tion, according to data from Seoul, not including Japan says the victims’ right to sue had been ex- “We plan to reduce our global production earlier this month, with strong sales fu- women forced into sexual slavery by Japanese troops. tinguished by the 1965 treaty which saw Seoul and by some 40 percent in September, from elled by the recovery from the coron- In a landmark ruling in 2018, the Supreme Court Tokyo restore diplomatic ties and included a repara- just under 900,000 originally planned,” a avirus crisis. Following the Nikkei report ordered Mitsubishi Heavy Industries to pay compen- tion package of about $800 million in grants and Toyota spokeswoman told AFP. yesterday, Toyota shares plunged 4.42 sations to a handful of the victims, but the Japanese cheap loans. —AFP The Nikkei said Toyota would also percent to 9,295 yen. — AFP