HONG KONG—Chinese technology shares dropped Tuesday, extending steep declines in the previous session that were fueled by investor concerns about China’s widening series of crackdowns on tech and other industries.
By early afternoon in Hong Kong, online gaming and social-media giant Tencent Holdings Ltd. had fallen 6.7%. The selloff pushed Tencent’s market value down to about $563 billion, according to FactSet—meaning it has lost about $379 billion of market capitalization since peaking in mid-February.
Hong Kong-listed shares in Alibaba Group Holding Ltd , China’s biggest e-commerce company, also lost ground, falling 5%.
China is months into a campaign to rein in big tech that has spanned issues such as data security, monopolistic behavior and financial stability. The push has entangled companies such as Alibaba, its sister company Ant Group Co., and the ride-hailing giant Didi Global Inc. Drastic moves unveiled in recent days to curtail the after-school tutoring industry have also unnerved investors.
The city’s Hang Seng Tech Index shed 5.2%, outpacing a 2.1% drop in the broader Hang Seng gauge. That took the year-to-date decline for the tech benchmark, which launched exactly one year ago and which covers 30 locally listed stocks, to nearly 24%, according to FactSet.