Alibiba Shares Plummet to Record Low in Hong Kong After This Happened

China’s e-commerce giant Alibaba saw its shares slide after a fresh round of proposed regulations hit the tech industry.

The Hang Seng Tech Index closed 2.9% lower after earlier falling to lowest since its inception in July 2020 with Alibaba Group Holding Ltd. falling 5.5% to a record low in Hong Kong.

Video streaming giant Kuaishou Technology also closed down 7.1% to close at new all-time low for a fifth consecutive session.

Tencent Holdings Ltd. closed down 3.4% and food-delivery giant Meituan tanked 7.2%. There was also a 6.5% drop in ride-hailing company DiDi Global Inc. in the U.S. on Wednesday.

China had announced that it is studying proposals to further ensure the rights of drivers who work for online companies and to step up oversight of the live streaming industry.

Tencent warned the industry to prepare for more regulations including potential substantial changes to how companies use data for advertising.

Global fund managers including Cathie Wood dumped their holdings in Chinese stocks over the past few months.

Investors are not at a point where they “will cease to price in any more additional policies,” said Shine Gao, fund manager at Taicheng Capital Management Co. “Even if the worst is over for big tech firms in terms of new regulations, we should expect that their growth won’t be what it was.”

Alibaba’s shares have slumped 30% this year in Hong Kong and it’s U.S. listed shares are down about 26% for the year.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.