China Tech Stock Benchmark Tests Lows on Regulatory Pressure

(Bloomberg) -- A benchmark tracking China’s biggest technology giants looked set to test new lows Monday as Beijing’s ongoing regulatory crackdown against private enterprise continued to weigh.

The Hang Seng Tech Index dropped as much as 2.7%, bringing the gauge to less than 1% away from its Aug. 20 record low. The benchmark -- which includes firms like Tencent Holdings Ltd. and Alibaba Group Holding Ltd. -- has fallen for three consecutive weeks on concerns over whether the curbs have further to run. 

The latest blow came last week when Beijing said it will take further steps to rein in internet companies, citing the shared economy, online health care and smart delivery as areas of concern. A media report added that the review of gaming content was getting stricter.

The gauge, which was officially launched last July, is down some 45% since its February peak.

©2021 Bloomberg L.P.