$560M Wiped Out From China Markets Due To Clampdown

China's tech stocks slumped to new lows on Friday and Hong Kong's benchmark index hit an almost 10-month trough, as an unrelenting series of Chinese regulatory crackdowns crushed investors' confidence, Tom Westbrook and Samuel Shen reported for Reuters.

Photo Insert: The Shanghai Stock Exchange

More than $560 billion in market value has been wiped off Hong Kong and mainland China exchanges in a week as funds capitulate out of once-favored stocks, unsure which sectors regulators will target next.

The Hang Seng fell 1.8% and its weekly drop of 5.8% was the largest since the height of the pandemic panic in financial markets in March 2020.

Stocks in Shanghai also fell, while investors sold risky corporate debt and the Chinese currency. The yuan was poised for its biggest weekly loss in two months as investors rushed to safety amid global coronavirus concerns.

US-listed shares of China-based tech-related companies gained ground as bargain hunters took advantage of recent sell-offs resulting from Beijing's ongoing regulatory crackdown, which has wiped half a trillion dollars from Chinese markets this week.

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