The JSE was little changed on Tuesday morning, as investors digested the latest regulatory moves by China and the country’s disappointing economic data.
Earlier, data showed that Chinese factory activity slowed in August, indicating that the world’s second-largest economy took a hit from the Delta variant outbreak.
Meanwhile, China has moved to limit the time spent by children playing video games to just three hours most weeks, as part of its ongoing regulatory crackdown to make the “world a better place”.
Gaming platforms such as Tencent can offer online gaming to minors only between 8pm and 9pm on Fridays, weekends and public holidays. Escalating restrictions on the lucrative gaming business are likely to spook investors who had cautiously returned to Chinese stocks in recent days.
“With a seemingly new intervention by the China government in a new sector each day, it is clear that regulatory risk is not going away anytime soon. If China’s economy is indeed slowing as well, the picture becomes darker once again,” said Oanda senior market analyst Jeffrey Halley.
“One bright spot is that a slowing economy in China will prompt stimulus measures from the central government, potentially limiting the fallout on equities.”
At 9.35am, the JSE all share was little changed at 67,595.88 points and the top 40 had lost 0.11%. Banks had lost 0.52%, financials 0.27% and industrials 0.10%.
In Europe, the FTSE 100 had gained 0.15%, while France’s CAC 40 and Germany’s DAX 30 were little changed.
Earlier, the Shanghai Composite gained 0.17%, Hong Kong’s Hang Seng 0.48% and Japan’s Nikkei 225 0.54%.
At 9.05am, the rand had strengthened 0.22% to R14.6108/$, while it had weakened 0.05% to R17.2822/€ and 0.13% to R20.1451/£. The euro was 0.26% firmer at $1.1828.
Gold gained 0.34% to $1,815.83/oz and platinum 0.26% to $1,011.60. Brent crude fell 2.26% to $71.70 a barrel.
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