Alibaba shares sink to record low as China regulations on tech continues
Alibaba Group shares sank by 5.4 per cent to a record low in Hong Kong on Thursday, following the latest round of regulations on Chinese tech giants by Beijing.
The shares fell after China reportedly said it was looking at separate and new regulatory proposals including heightening oversight of the live streaming industry and ensuring the rights of drivers who work for online companies.
Shares in China’s biggest advertising platform, Tencent Holdings, also slipped by 3.35 per cent after Tencent executives announced that the government could make substantial changes to how companies use data for advertising in a post-earnings conference call, according to reports.
The news follows the loss of around $1tn of market value from Chinese shares listed globally last month as a result of China’s crackdowns on the technology sector, which rapidly extended beyond antitrust and e-commerce into private tutoring and online content.
On Tuesday China moved to tighten control of its technology sector by publishing detailed rules aimed at tackling unfair competition and companies’ handling of critical data.