Business Maverick: Chinese Tech Stocks Drop to New Crackdown Lows, Led by Alibaba

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Chinese technology stocks dropped for a third straight session amid fresh worries over Beijing’s regulatory plans for the sector.

The Hang Seng Tech Index fell as much as 3.1% on Tuesday, on course for its lowest close since inception in July 2020. Alibaba Group Holding Ltd. led declines following a Bloomberg report that authorities are kicking off another round of checks on its fintech business arm.

it’s facing a new crackdown on its core businesses. Meituan dropped to the lowest since July 2020 after Beijing on Friday ordered the delivery platform to cut fees. The question is “how much large internet companies’ earnings will be impacted in the long-term if they are required to take increasing social responsibility,” said Jian Shi Cortesi, a portfolio manager at GAM Investment Management. There are not enough details currently to make a conclusion yet, she added.

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