China Tech Index Tumbles to Lowest Since Launch as Rout Deepens
Added 12-06-21 05:04:02am EST - “(Bloomberg) -- China tech shares tumbled on Monday, with a key gauge closing at its lowest level since launch last year as concerns mount over how much more pain Beijing is willing to inflict on the sector.Most Read from BloombergThe…” - News.yahoo.com
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(Bloomberg) -- China tech shares tumbled on Monday, with a key gauge closing at its lowest level since launch last year as concerns mount over how much more pain Beijing is willing to inflict on the sector.
The Hang Seng Tech Index closed down 3.3%, its biggest decline in nearly two months, to the lowest level since before its July 2020 inception. Alibaba Group Holding Ltd. and JD.com Inc were the biggest losers, each sinking at least 4.9%. Both companies are also traded in the U.S.
The decline tracks Friday’s 9.1% plunge in the Nasdaq Golden Dragon China Index, which was the biggest decline since 2008, on worries that Didi Global Inc.’s delisting would put pressure on other Chinese firms to follow suit.
“The selloffs in the dual-listed stocks in both Hong Kong and the U.S. will continue given the U.S. regulation scrutiny,” said Castor Pang, head of research at Core Pacific Yamaichi. “It could be troublesome for them to submit accounting records to the U.S. government.”
U.S. regulators last week deepened efforts to boot Chinese companies off American stock exchanges for not complying with Washington’s disclosure requirements. A delisting from the U.S. stock market could raise the Chinese firms’ cost of capital and reduce investor pool.
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