China Tech Giants Lose $831B In Value As Selloff Intensifies

China’s technology giants have seen a combined $823 billion wiped from their market value since a February peak, with Beijing’s expanding crackdown on the sector fueling investor concern that the selloff is far from over, Jeanny Yu and Abhishek Vishnoi reported for Bloomberg News.

Authorities earlier in the week issued a sweeping warning to the nation’s biggest companies, vowing to tighten oversight of data security and overseas listings just days after Didi Global Inc.’s contentious decision to go public in the US.

That has put further selling pressure on China’s biggest technology names including Tencent Holdings Ltd., Alibaba Group Holding Ltd., JD.Com Inc., Baidu Inc., and Meituan.

“The selling will continue in the third quarter,” said Paul Pong, managing director at Pegasus Fund Managers Ltd. He says he sold two-thirds of his technology stock holdings, including in Tencent and Alibaba, in May. “The measures from authorities will keep coming.”

The losses have come from 10 firms including three US-listed names. Didi’s ADRs fell 20% stateside on Tuesday, erasing about $15 billion of its market value. The Hang Seng Tech Index, whose members include many of China’s biggest tech companies, fell as much as 1.9% before paring losses to 0.6% Wednesday, marking its sixth consecutive day of declines.

Tencent slid 1.9%, among the biggest decliner on the Hang Seng Index. Alibaba dropped 1.7%, while Meituan fell 1.3%.

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