(Bloomberg) -- U.S.-listed Chinese stocks declined in premarket trading as concerns resurfaced over Beijing’s regulation of the technology sector.
Shares in e-commerce giant Alibaba Group Holding Limited fell 4.3% following a report that Chinese authorities told banks and state-owned companies to report their financial exposure to Ant Group Co. Alibaba owns a third of the fintech giant.
Worries over Beijing’s regulatory plans for the sector hit shares in other Chinese tech stocks, with JD.com Inc., down 2.4% and Baidu Inc. dropping 2.3%, mirroring moves in Hong Kong’s Hang Seng Index, which closed 2.7% lower at an almost seven-week low. Concerns over geopolitics and escalating tensions in Ukraine also weighed on risk assets more broadly on Tuesday.
Shares in Chinese tech companies have come under pressure this year as investors sell shares in growth stocks amid rising rates, denting the appeal of highly valued stocks. The Nasdaq Golden Dragon China Index, a gauge of U.S.-listed Chinese names, has fallen 5.9% in 2022.
©2022 Bloomberg L.P.
Advertisement