China’s Hang Seng Index plunged 4.22% on Tuesday, after shedding another 4.1% on Monday following Beijing’s continued crackdowns on tech sector.
- The plunge in Hang Seng Index is the steepest since the height of the coronavirus impacts in March 2020
- Chinese’s tech giants also fell, with Tencent Holdings shedding as much as 9% while Alibaba Group was down about 7%.
- Alibaba Health Information Technology dropped by about 19%, as the Hang Seng tech index ETF fell 7.85% to take three-day losses to 16%.
- The plunge in tech stocks follows investors’ concerns of regulatory changes in the sector, which has now extended further to real estate and education.
- Analysts say China’s crackdown is part of its five-year plan to transition to a socialist country and alleviate financial constraints to its middle-class population.
The dive in Chinese stock index dragged those of other countries, with US ES00 down 0.30% and Japan’s Nikkei 225 down 0.68% as investors weighed on Asian volatility ahead of Fed’s meeting on Wednesday.
Hang Seng Index is down -4.22%.