Chinese indices were among top underperformers during today’s Asian session. Apart from overall downbeat moods, equities from China were pressured by country-specific factors. Namely, Chinese authorities passed a personal data protection law as a next stop of their regulatory crackdown on the broad tech sector. New law will increase requirements for tech companies and ban them from collecting excessive data on users. Major Chinese indices finished today’s trading 1.2-2.8% lower with tech shares being among top laggards.
CHNComp dropped below a late-July low today and reached the lowest level since mid-March 2020. Bulls managed to halt decline and are trying to climb back above 8,700 pts price zone. Recent local high at 9,500 pts is the near-term resistance to watch. However, given that Chinese authorities have recently increased their actions against tech companies, index remains vulnerable to new regulatory laws being introduced.