[2021.7.29] Market recap and future considerations
Stock Price
The Nikkei Average yesterday fell by 388.56 points.
The short selling ratio is 44.6%, nearing half.
Chinese authorities announced a comprehensive regulation of the education-related technology industry.
In addition to requiring companies that provide study support services related to school curricula to convert to non-profit organizations, they prohibited capital increases and initial public offerings.
China is moving to make tutoring businesses non-profit—foreign investment and IPOs are also prohibited.
Chinese authorities appear to be targeting control over domestic companies.
As a result, Chinese stocks fell.
With Chinese stocks falling, Japanese stocks also seem to have fallen along with them.
Considering that the authorities want to control companies, I think these regulations will continue to tighten in the future.
Therefore, there is a tendency for prices to drop more easily.
The Nikkei Average yesterday fell by 388.56 points.
The short selling ratio is 44.6%, nearing half.
Chinese authorities announced a comprehensive regulation of the education-related technology industry.
In addition to requiring companies that provide study support services related to school curricula to convert to non-profit organizations, they prohibited capital increases and initial public offerings.
China is moving to make tutoring businesses non-profit—foreign investment and IPOs are also prohibited.
Chinese authorities appear to be targeting control over domestic companies.
As a result, Chinese stocks fell.
With Chinese stocks falling, Japanese stocks also seem to have fallen along with them.
Considering that the authorities want to control companies, I think these regulations will continue to tighten in the future.
Therefore, there is a tendency for prices to drop more easily.
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