Regulatory concerns hit Tencent, Chinese technology stocks tumble

China stock market dynamics

China’s technology stocks plummeted for the third consecutive day, as investors’ concerns about increased regulatory efforts increased, and Tencent’s share price recorded its biggest decline in a decade after Tencent stopped registering its flagship app.

Hong Kong’s Hang Seng stock benchmark fell more than 5% on Tuesday, and the Hang Seng Technology Sub-Index fell 8.7%. Tencent shares fell 10%, e-commerce group Alibaba fell 7.7%, and food delivery platform Meituan fell 17%.

As a benchmark for Chinese technology stocks listed in New York, the Nasdaq Golden Dragon China Index fell 15% in two days, the biggest drop since 2008.

Chinese technology stocks have Assault this week Concerns about the expanding scope and severity of Beijing’s regulatory crackdown on the industry.Friday, one Leaked memo Implying a comprehensive reform of China’s US$100 billion private education industry, threatening to Wipe out billions Foreign investment in US dollars.

TencentOne of China’s largest technology groups said on Tuesday that its flagship WeChat social network has suspended user registration because it has upgraded its security technology to “be in line with all relevant laws and regulations.” The company stated that “registration will be resumed after the upgrade is completed, and it is expected to be in early August.”

Since ride-hailing company Didi Chuxing conducted its $4.4 billion IPO in New York last month, regulatory pressure from Beijing has been escalating rapidly.A few days later, the Chinese cybersecurity regulator announced Data Security Probe Enter the company.

Senior leaders in Beijing called for a thorough reform of the system by which Chinese companies can list overseas.The country’s cybersecurity regulator has announced plans Review all overseas listings A company with more than 1 million users on the grounds of national security.

Hong Kong traders were shocked by the latest sell-off on Tuesday and said they are struggling to cope with the trading volume.

“Have I seen anything like this? No,” said Louis Tse, the founder of Hong Kong brokerage Wealthy Securities and a market veteran. Xie added that the impact of the latest regulatory measures against Tencent is “far-reaching.”

In mainland China, the Shanghai and Shenzhen 300 Index fell 3.5%.

Additional reporting by Ryan McMorrow in Beijing

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