China's regulatory crackdown has wiped billions off tech stocks — here are the risks ahead

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China has introduced a slew of new tech regulation. With most landmark legislation passed, investors are wondering if it's time to jump into Chinese stocks.

But with most of the landmark legislation passed and visibility increasing on the requirements of companies, investors are now wondering if it's time to jump into Chinese technology stocks.

"Policy uncertainty remains [in] the forefront. There is some calmness in the Chinese markets now from the lack of negative news. However, confidence is extremely fragile now," Dave Wang, portfolio manager at Nuvest Capital, told CNBC. Meanwhile, Chinese companies listed on U.S. stock exchanges could face stricter listing and auditing rules.this week that Chinese companies already listed in the U.S. need to better inform investors about regulatory and political risks.carried out secondary listings in Hong Kong to hedge against these risks.There are also concerns that technology companies will have to change their business practices ahead of landmark policies coming into effect.

"Acquisitions, especially of businesses that may be perceived as a competitive threat, will be scrutinized more. Exhibiting pricing power, especially with small merchants or consumers, will be more difficult to implement."

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China is cracking down on corporate corruption and the United States must do the same.

good luck

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