As of typing this, the Hang Seng was down 1400 points. The last 3 trading days can be labelled as an official crash
Chinese tech stocks are continuing their big sell-off as investors continue to digest Beijing's widening crackdown on private enterprise.
Meituan dropped 16% in Hong Kong on Tuesday, eclipsing Monday's massive 14% loss — making it the food delivery firm's worst two days on record.
That plunge — which combined, has wiped out more than $56 billion in market value for Meituan since Friday — came as Chinese regulators issued new guidelines Monday calling for improved standards for food delivery workers.
China's State Administration for Market Regulation said in a statement that companies should take steps to ensure that riders make at least the local minimum wage, to reduce the "intensity" of the workload, and to "strengthen traffic safety education and training," among other measures.
Meituan runs one of China's biggest food delivery platforms, with hundreds of millions of users making transactions on its app annually. The company said in a statement Tuesday that it had "received and closely studied" the new rules, and would "strictly comply" with them.
"We are committed to improving our compliance standards to protect the rights of our stakeholders, which include delivery riders," it added. "We believe that the publication of the new guidelines will benefit the healthy development of China's internet industry as a whole."
Its shares have sunk more than 32% so far this year.
Other tech giants' stocks dropped, too. Shares of China's two most valuable companies, Alibaba and Tencent, also slid over the past 24 hours, with Alibaba closing down 6.4% in Hong Kong on Monday and falling another 4.6% on Tuesday. Tencent dropped 7% in Hong Kong on Tuesday, also extending Monday declines.
The Hang Seng TECH Index, a Nasdaq-like technology index that tracks the largest tech firms trading in Hong Kong, fell 4.5% on Tuesday, bucking the regional trend among many major indexes.
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Submitted July 27, 2021 at 03:29AM by GadnukBreakerOfWrlds https://ift.tt/3f1lhqu
