Alibaba Group Holding Ltd. shares slumped as much as -4.3% to a record low in Hong Kong on Thursday, extending a selloff in Chinese technology giants after Beijing hit the industry with a fresh round of regulations.
The crackdown wiped off nearly $1 trillion of market value from Chinese shares listed globally last month as it quickly expanded from antitrust and e-commerce concerns to private tutoring, data security and online content. Alibaba’s shares have slumped 29% this year compared to a fall of just under 7% for the Hang Seng Index.
The selloff has prompted some global fund managers including Cathie Wood to dump their holdings in Chinese stocks over the past few months. In fact, some investors are questioning allocations toward Chinese assets altogether.
The new moves are incremental but investors are not at a point where they “will cease to price in any more additional policies,” said Shine Gao, fund manager at Taicheng Capital Management Co. “Even if the worst is over for big tech firms in terms of new regulations, we should expect that their growth won’t be what it was.”
The Hang Seng Index fell as much as -2% Thursday.
Submitted August 19, 2021 at 12:24AM by Avid_Hiker98 https://ift.tt/3y1ybey
