Chinese tech stocks dropped for the third straight session amid worries over fresh crackdown and regulatory plans for the sector.
The Hang Seng Tech Index fell more than 3% on Tuesday. Alibaba Group Holding Ltd. Led decline, which followed a Bloomberg report that authorities initiated another round of scrutiny on its fintech arm.
Food delivery giant Meituan declined another 6% on Tuesday after Beijing on Friday ordered it to cut fees. Tencent Holdings Ltd. dropped as much as 3%, even after denying it is facing a new scrutiny of its core businesses.
The question is “how much large internet companies’ earnings will be impacted in the long-term if they are required to take increasing social responsibility,” said Jian Shi Cortesi, a portfolio manager at GAM Investment Management, as reported by Bloomberg. There are not enough details currently to make a conclusion yet, she added.
Members of the Hang Seng Tech Index have lost a combined $1.6 trillion since the February peak last year, Bloomberg data show.
