China Tech Stocks Slump as Nation Issues Draft Competition Rules

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(Bloomberg) — China’s latest moves to tighten its grip on internet giants helped trigger a fifth consecutive day of selling in the nation’s bellwether technology stocks.

The Hang Seng Tech Index dropped 3.1%, after the market regulator issued draft rules banning unfair competition among online platform operators. Alibaba Group Holding Ltd. fell nearly 5% and was the biggest point-drag on the benchmark Hang Seng Index, which closed 1.7% lower. Losses accelerated in afternoon trade as China issued separate rules to protect key network facilities and information systems, effective next month.

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Baidu Inc. and NetEase Inc. fell more than 5% while Tencent Holdings Ltd. dropped 4.1%. The declines followed Monday’s selloff in Chinese online game firms in the wake of state media criticism of the sector.

finance.yahoo.com/news/china-tech-stocks-slump-nation-052917385.html

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