Alibaba Falls to Record Low, Extending Tech Selloff on Crackdown
(Bloomberg) — Alibaba Group Holding Ltd. shares slumped as much as 4.1% to a record low on Thursday, extending a selloff in Chinese technology giants after Beijing hit the industry with a fresh round of regulations.
Shares dropped after China said it is studying separate proposals to further ensure the rights of drivers who work for online companies and to step up oversight of the live streaming industry. Sentiment for China’s largest advertising platform also soured after peer Tencent Holdings Ltd. executives said in a post-earnings conference call that the government can make fairly substantial changes to how companies can use data for advertising.
Hong Kong’s Hang Seng Index fell as much as 2%, while internet giant Meituan fell as much as 7.2%.
The regulatory crackdown wiped off nearly $1 trillion of market value from Chinese shares listed globally last month as it quickly expanded from antitrust and e-commerce concerns to data security and online content. Alibaba’s shares have slumped 29% this year compared to a fall of just under 7% for the Hang Seng.
Separately, Tencent reversed earlier gains of as much as 3.4% to trade down 1% as of 11:20 a.m. in Hong Kong as its warnings for more regulatory curbs on the industry overshadowed second quarter earnings that beat estimates.
READ: Tencent Warns of More China Tech Curbs After Growth Sputters
(Updates to add more context)
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