China: Stocks fall as Beijing's crackdown fears hit sentiment

[SHANGHAI] China shares fell on Thursday as investors took cues from state media reports to dump online gaming companies, fertiliser producers and spirit makers, worried these sectors could be the next target of a government crackdown.

Risk appetite has also been curbed by concerns over the fresh outbreak of Covid-19, as the Delta variant spreads in the country.

The blue-chip CSI300 index fell 0.6 per cent to end at 4,948.67, while the Shanghai Composite Index lost 0.3 per cent to 3,466.55.

Online gaming stocks, which slumped on Tuesday after a state media report labelling the industry "spiritual opium" fell further, as the official Securities Times called for healthy development of the sector.

Gaming stocks including Perfect World, Youzu Interactive and Wuhu Sanqi Interactive Entertainment Network Technology all dropped.

Investors also scrambled to exit chemicals makers such as Luxi Chemicals Group and Yunnan Yuntianhua on news that China is probing into chemical fertiliser companies over price gouging.

Growth hormone stocks, including Changchun High & New Technology Industries and Anhui Anke Biotechnology (Group) tumbled, after state media issued a new warning that such products do damage to people's health.

In addition, investors dumped spirit makers, including Kweichow Moutai and Luzhou Laojiao as they were spooked by an article on the Ministry of Science & Technology's website that linked alcohol with some types of cancers.

REUTERS