Chinese tech shares shed loss for a second session on Monday on fears of further crackdown by Beijing on private enterprise.
China’s banking regulator on Friday warned against illegal fund-raising schemes with regards to metaverse concept and an industry association vowed on Monday to resist speculative trades in the sector.
Tencent Holdings Ltd – China’s pioneer in metaverse development – fell as much as 6.3 per cent. Alibaba Group Holding Ltd dropped as much as 4.3 per cent.
Hong Kong’s Hang Seng Tech Index, which tracks the biggest Chinese tech firms, was on track to lose over 6 per cent over the two sessions..
“There is concern about new regulatory reforms,” said Justin Tang, head of Asian research at United First Partners to Bloomberg.
“Prior to Meituan, there was a sense of ‘this is it in relation to reforms’. Investors are now thinking that there could be more to come.”
