China tech stocks sink on DiDi delisting plan, regulation woes

China tech stocks sink on DiDi delisting plan, regulation woes

Stocks















Bloomberg

China’s technology stocks slumped as trading resumed in Hong Kong after the long weekend, with continued concern over government regulation and a potential delisting of US-traded shares dampening sentiment.

The Hang Seng Tech Index declined 3.8% from its closing level on April 14, with video-game streaming site Bilibili Inc plunging almost 11%. China is starting a two-month “clean-up” inspection of the live-streaming and short video sectors to crack down on illegal behaviours, according to a statement posted on the Cyberspace Administration’s website.

Tech shares are struggling again after a brief mid-March rally, as Beijing’s crackdown continues despite a pledge by authorities to support the battered sector. The risk of local firms getting kicked from American exchanges also lingers. Ride-hailing giant DiDi Global Inc tumbled in New York after saying it’s planning to delist its US-traded shares before finding a new venue for the stock.

“News of DiDi’s plan to delist its US-traded shares has dragged down market sentiment and hurt some tech shares today,” said Willer Chen, an analyst at Forsyth Barr Asia Ltd.

DiDi’s plan comes amid a US-China spat over audit of Chinese firms trading on American