Chinese Tech Stocks Drop to New Crackdown Lows

The Hang Seng Tech Index fell 1.9% on Tuesday to the lowest close since its inception in 2020. Alibaba Group Holding Ltd. was among the biggest losers following a Bloomberg report that authorities have begun another round of checks on its fintech business arm. The rout weighed on the broader Hong Kong market, with the Hang Seng Index slipping 2.7%, struggling to shake off the impact of China’s sweeping crackdown on private enterprise. The gauge was also dragged lower as HSBC Holdings Plc reported a charge relating to its Chinese commercial real estate exposure, while global equities face pressure from escalating Ukraine tensions.

President Xi Jinping’s “common prosperity” campaign has put the business models of many tech titans in the firing line. Food delivery giant Meituan declined another 5.1% on Tuesday after Beijing on Friday ordered it to cut fees. Tencent Holdings Ltd. erased losses to trade little changed after denying it is facing a new scrutiny of its core businesses. The Hang Seng Index has more than halved from last year’s February peak with Beijing’s anti-monopoly campaign now into its second year.