A selloff across Chinese equities deepened on Tuesday as concerns about the country’s ties with Russia and persistent regulatory pressure sent shares on a downward spiral.
The Hang Seng China Enterprises Index, which tracks Chinese shares listed in Hong Kong, sank 6.6%, following a plunge in the previous session that was the biggest since the global financial crisis. Tech giants Alibaba Group Holding and Tencent Holdings led the decline. The benchmark Hang Seng Index slumped 5.7%, its biggest fall since July 2015.
China’s equities are looking increasingly risky on concerns that Beijing’s ties with Russia could spark new US sanctions. That’s adding to worries from regulatory developments including a possible delisting from the US exchanges. While upbeat economic data was a rare bright spot in the market, growing lockdowns in major Chinese cities are dimming the outlook.