Chinese tech shares fell near record lows in Hong Kong, as Didi Global Inc.’s announcement to start US delisting and rising scrutiny on mainland firms traded there dealt a further blow to already soured sentiment on the sector.
The Hang Seng Tech Index, which tracks mostly big Chinese technology giants traded in Hong Kong, dropped as much as 2.5% to hover over its lowest level since the gauge was launched in July last year. Members of the index have seen about US$1.5 trillion of combined market value evaporate since a February peak.
Ride-hailing giant Didi said Thursday, Dec 2 it has begun preparations to withdraw from US stock exchanges and will start work on a Hong Kong share sale, yielding to demands from Beijing that had opposed its American listing. The news came after US regulators announced a final plan for putting in place a new law that mandates foreign companies open their books to American scrutiny or risk being kicked off the country’s exchanges within three years.