Chinese tech stocks decline in Hong Kong on concerns over regulatory crackdown and potential delisting of U.S. traded shares.
The Hang Seng Tech Index dropped as much as 4% after China announced two-month “clean-up” inspection of live streaming and short video platforms to crack down on illegal behaviors, according to a statement posted on the Cyberspace Administration’s website late Friday as reported by Bloomberg.
The Nasdaq Golden Dragon China Index fell 2% overnight.
Sentiments are also impact as DiDi Global Inc. said on Monday it’s planning to delist its U.S. listing before finding new exchange for its stock.
“News of DiDi’s plan to delist its U.S.-traded shares has dragged down market sentiment and hurt some tech shares today,” said Willer Chen, an analyst at Forsyth Barr Asia Ltd as reported by Bloomberg.
Didi’s plan came at a point when U.S.-China are on a process to resolve auditing issue of Chinese firms listed in the U.S. Despite Beijing’s effort to allow greater access to audit Chinese firms, investors are still wary of delisting risk.
