Chinese technology stocks listed in the US are set for their worst month since the global financial crisis after investors dumped shares following a regulatory crackdown by Beijing, reported the Financial Times.
The Nasdaq Golden Dragon China index, which tracks Chinese tech stocks listed in New York, has fallen 22% in July, putting it on course for its biggest monthly fall since 2008. Shares in Chinese internet groups Tencent and Alibaba have dropped about 16% and 10% respectively.
The sharp declines come as Beijing has launched a regulatory assault on companies that handle large amounts of data and education businesses, as well as an overhaul of how Chinese groups list on stock markets outside the country.
On Friday, at a high-level meeting chaired by President Xi Jinping, the Chinese Communist party’s top leaders said they would “improve the system of regulatory supervision for companies listing overseas”, according to a report from state news agency Xinhua that did not give further details.