Shares of Alibaba fell by 5.5% in Hong Kong to a record low on Thursday as other Chinese stocks fell on a fresh round of market draft rules, Bloomberg reports.
- Tencent Holdings closed down 3.4%, erasing prior gains, while food-delivery firm Meituan plunged by 7.2%. Didi Global Inc. fell 6.5%.
- The fall in stocks pushed the Hang Seng Tech Index down 2.9%, after declining to its lowest level since July 2020.
- The fall in Chinese stocks happened after the government said it is studying proposals to compel online companies to protect the rights of drivers.
- Beijing also hinted at stepping up its oversight over the live streaming industry.
- Investor sentiments on Chinese stocks were also fueled by Tencent’s warnings of the industry to expect more regulations, including how companies use data for advertising.
- The recent moves by Beijing have caused investor worries, with some questioning allocations into Chinese assets.
Crackdowns on the tech sector by Beijing in recent weeks have erased about $1 trillion of market value on Chinese shares listed globally.
The Hang Seng Index is down -2.13%, USDCNY is up +0.01%.