Chinese tech companies have lost nearly 25 254bn in market value in two days following regulatory scrutiny of the country’s dominant financial technology groups following the unveiling of new no-confidence rules in stocks sent to the sector.
The tech-heavy ChinaSex index fell 2.9 percent and Shanghai’s Star 50 index fell 2.7 percent after a senior official with the China Insurance and Banking Regulatory Commission assured a closer look at the fintech monopoly.
Selling of Chinese tech stocks has expanded to Hong Kong, where the Hang Seng Tech Index.4. cent is broken.
Hong Kong-listed shares in Alibaba fell 8.3 percent, down 13 percent from the previous two sessions and raised કંપની 104 billion in the company’s market capitalization. Competitors Tencent and JD.com were down per cent and 8.8 per cent, respectively, while food delivery group Metuan was down 5.5 per cent.
Xiaomi, which has surpassed Apple as the world’s third largest smartphone maker, is also down 11.7 percent in two days.
The renewed distrust of tech companies comes as groups exert an increasingly widespread influence on everyday life in China, where one-fifth of the country’s consumer goods are now sold on Alibaba.
Last week, Chinese regulators blocked Ant Ant Group’s Al 37bn initial public offering fur, Alibaba payments and lenders after it released new draft rules for Chinese online credit. Last month, Beijing released the first draft of a comprehensive law on the protection of personal data.
Recent comments from CBIRC Vice-Chairman Liang Tao have added to the downward pressure on stocks from China’s rival Wach Dog this week.
Speaking to attendees at the Finance Summit in Beijing on Wednesday, Mr Liang said, “Where there are market monopoly problems, we should learn from international experience, strengthen our anti-Mars exams and maintain a secure market system.”
The next day, market regulation for the state administration, China’s competition observer, released new rules targeting behavior, including the use of exclusivity clauses to prevent competition, treat customers differently based on their cost data, and force them to buy bundles of products. . required.
“Looking at the proposed guidelines, we believe that if some of these are passed and implemented, it could affect the growth of the industry,” said Alicia Yap, Managing Director of Citi and Head of Pan-Asia Internet Research.
Ms Yap said the rules could limit targeted ads and product recommendations used by almost all ecommerce platforms, while the rules of “mandatory exclusivity” could hit Matuan, which in the past did not require rest restaurants to list on competitive platforms.
But Shanghai merchants new messages meant doomsday for China’s most successful companies.
“It simply came to our notice then [Beijing] Saying, [to] All the big companies: “Even if you are a giant like Anti Group, you have to play ball with our rules – you all need to stay in line as per the instructions of the authorities,” said a Chinese brokerage trader.
Elsewhere in Asia on Wednesday, Japan’s topics rose 1.3 percent while Australia’s S&P / ASX 200 rose 1.6 percent.
