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.

Alibaba shares have dropped to their all-time low in Hong Kong
  • 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%.