Hong Kong stocks rise on potential Chinese government crackdown

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Hong Kong stocks rise on potential Chinese government crackdown

SYDNEY, NSW, Australia - A potential easing of the Chinese government's crackdown on technology companies has resulted in higher stock prices in Hong Kong.

Most Chinese tech companies are listed on the Hong Kong stock exchange.

A meeting between the executives and directors of some of the main technology governments and high-level officials of the government was held Tuesday to discuss the regulatory regime put in place by the government.

The market thinks that the worst would be over for China's year-long, multi-pronged crackdown on its internet industry. The rise of several Hong Kong-listed tech companies has been a result of this, according to Zhang Zihua, chief investment officer at Beijing Yunyi Asset Management.

The Hang Seng in Hong Kong was still trading, ahead more than 600 points or three percent, at the time of writing.

In Japan, the Nikkei 225 gained 112.70 points or 0.42 percent, to close Tuesday at 26,659. The Australian All Ordinaries gained 24.40 points or 0.33 percent to 7,350. In New Zealand, the S&P NZX 50 went against the trend, sliding 19.78 points or 0.18 percent to 11,137. The US dollar lost ground against all currencies, except the Japanese yen, which remained unchanged at 129.32, around the Sydney close Monday.

The euro was at 1.0457. The British pound was sharply higher at 1.2414 after a decline in the unemployment rate from 3.8 percent to 3.7 percent. The Australian dollar was up to 0.7011 at the beginning of the day. The Dow Jones was the only major index to finish in front overnight on Wall Street, albeit with a modest 26.76 points or 0.08 percent gain to 22,223. The Nasdaq Composite was the hardest hit index, tumbling 142.21 points or 1.20 percent to 11,662. The Standard and Poor's 500 slipped 15.88 points or 0.79 percent to 4,008.