The rout in Chinese technology giants deepened on Thursday after the industry was hit with a fresh round of new regulations.
The Hang Seng Tech Index closed 2.9 percent lower after earlier falling to the lowest since its inception in July 2020 with Alibaba Group slumping 5.5 percent to a record low in Hong Kong.
China’s market regulator issued draft rules aimed at stopping unfair competition on the internet, as Beijing continues its broad crackdown on the country’s technology sector.
Top antitrust regulator the State Administration for Market Regulation issued sweeping draft rules governing online competition as the cabinet updated rules for operators of information infrastructure that experts say target data-rich firms. Sentiment also soured after Tencent warned the industry to prepare for more regulations including potential substantial changes to how firms use data for advertising.
Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) has overtaken Tencent to become Asia’s most valuable firm, CNBC reported.
The Taiwanese chipmaker is now sitting at the top spot by market capitalization — among Asia firms — at more than $538 billion, according to Refinitiv Eikon.