China tech giants lost $250 billion in market value amid potential regulations

Jack Ma, CEO of Chinese e-commerce giant Alibaba, speaks during his visit at the Vivatech startups and innovation fair, in Paris on May 16, 2019.

Philippe Lopez | AFP | Getty Images

SINGAPORE — Shares of China’s top technology giants were battered on Wednesday as regulatory concerns continue to mount.

By Wednesday afternoon in Asia, Hong Kong-listed shares of Alibaba plunged 8.86% while Tencent dropped 5.38%. Smartphone maker Xiaomi also declined 5.73% and China’s biggest on-demand delivery services firm Meituan Dianping fell 7.47%. E-commerce also saw its stock plummet 8.11%.

The broader Hang Seng Tech index saw heavy losses as well, and fell 5.6%.

The combined losses of the five tech heavyweights since their Monday’s close has contributed to more than $250 billion being wiped off in terms of market cap, based on CNBC calculations.

Chinese regulator — the State Administration for Market Regulation — on Tuesday announced a set of draft rules aimed at curbing monopolistic behavior on internet platforms. The moves were possibly further exacerbated by a global rotation out of tech stocks seen globally in recent days. A positive development on the coronavirus vaccine front has spurred hopes of a recovery in areas such as travel, and investors are selling down tech and switching to stocks in energy and industrial sectors instead.

Regulatory concerns

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