Chinese tech stocks tumble in Hong Kong amid tighter regulation
Shares of Chinese tech companies fell in Hong Kong trading, hit by concerns over new regulations and overnight losses of tech stocks in the United States
The Hang Seng technology index fell as low as 4.2% to an all-time low of 5,350.06 on Wednesday morning before cutting losses. The index, which tracks the 30 largest listed tech companies in the city, was down 3.5% to 5,384.28 at the lunch break.
The industry’s downturn came after Beijing passed new rules that tighten controls on tech companies’ listings and overseas activities, while outlawing “unreasonable discrimination” in prices based on consumer habits data. user reviews, a key monetization tool for China’s largest e-commerce and short video platforms. .
Meituan HK: 3690
collapsed 9.4% and Bilibili Inc. HK: 9626
fell 8.8%. JD.com Inc. HK: 9618
and Kuaishou Technology HK: 1024
both lost more than 6%. Tencent HK: 700
was down 3.5%, after the company sold a $ 3 billion stake in Singaporean internet company SEA Ltd. a few days after selling shares of JD.com.
Tencent’s latest divestiture appears to be in line with Beijing’s desire to “suppress [on] monopoly practices in the technology / platform industry in China, ”as well as concerns that sensitive data is controlled by a handful of private companies, said Kelvin Wong, analyst at CMC Markets. He said investors are now speculating that Tencent may reduce its stakes in other Chinese tech companies such as Meituan and Kuaishou.
In the United States, the Nasdaq Composite COMP
fell 1.3% on Tuesday after starting the new year up. KGI Securities said rising Treasury yields and diminishing fear of omicron are shifting funds from new economy stocks to sectors linked to the economic recovery.