Jack Ma, CEO of the Chinese e-commerce giant Alibaba, speaks during his visit to the Vivatech trade fair for startups and innovations on May 16, 2019 in Paris.
Philippe Lopez | AFP | Getty Images
SINGAPORE – Shares in China’s top tech giants were beaten on Wednesday as regulatory concerns continued to mount.
On Wednesday afternoon, Hong Kong-listed Alibaba shares in Asia fell 8.86% while Tencent fell 5.38%. Smartphone maker Xiaomi also fell 5.73% and China’s largest on-demand delivery service company Meituan Dianping fell 7.47%. Ecommerce JD.com was also down 8.11%.
The broader Hang Seng Tech Index also posted heavy losses, falling 5.6%.
The combined losses of the five tech heavyweights since the close of trading on Monday have helped wipe more than $ 250 billion in market cap based on CNBC calculations.
The Chinese regulatory authority – the state administration for market regulation – announced a draft regulation on Tuesday to curb monopoly behavior on Internet platforms. The moves may have been exacerbated by a global rotation in technology stocks watched around the world for the past few days. ONE positive development in the area of coronavirus vaccines has raised hopes for a recovery in areas such as travel, and Investors are selling tech and instead switch to stocks in the energy and industrial sectors.
Andrew Collier, chief executive of Orient Capital Research, told CNBC that the sudden decision to suspend Ant’s listing was a “disaster”.
“Two days before the international launch there will be no initial public offering worth 35 billion US dollars. This makes the regulatory system seem completely arbitrary and also confused,” said Collier on Wednesday to CNBC’s “Street Signs Asia”. The Ant Group wanted to raise just under $ 34.5 billion world’s largest IPO.
“It suggests a deep policy in China … that is bubbling to the surface and that they couldn’t resolve in advance,” said Collier. “Regulation can be positive, but this particular move has been a disaster.”
– CNBC’s Arjun Kharpal contributed to this report.