Fears of increased of regulation from Beijing crushed U.S.-listed Chinese stocks on Friday following a Chinese government crackdown on private educators.
A broad crackdown on China's massive internet sector has already rattled investors. Beijing launched a data-related cybersecurity investigation into ride-hailing giant Didi Global Inc
just two days after it raised $4.4 billion in a New York initial public offering. Didi has fallen over 40% from its June 30 IPO price, while Baidu has tumbled 50% from its February record high and Alibaba is down 35% since October. "A lot of the fast-money types had recently been trying to catch a falling knife, and some of these stocks started to look OK. But today looks like a complete capitulation, where guys can’t stomach the pain of regulatory uncertainty. People have just given up," said Joel Kulina, a senior trader at Wedbush Securities who specializes in technology stocks.
The policy change threatens to decimate China's $120 billion private tutoring industry and imperils the listing ambitions of numerous venture capital-backed education firms, including Alibaba-backed Zuoyebang, and online education platforms Yuanfudao and Classin, both backed by Tencent.Reporting by Noel Randewich in Oakland, Calif. Editing by Matthew LewisSubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
U.S. to impose sanctions on Cuban officials over crackdown on protests -sourcesThe Biden administration plans to announce U.S. sanctions on Thursday against several Cuban officials over their role in a crackdown on anti-government protests earlier this month, people familiar with the matter said.
Leer más »
U.S. stock-index futures point to fourth day of gains for Wall StreetInvestors were gearing up for another positive session on Friday, with shares of Twitter and Snap rising in premarket trading.
Leer más »
Australia stocks set to trade lower as investors watch China tech shares in Hong KongInvestors will watch Chinese tech shares in Hong Kong after Bloomberg News reported that Beijing is considering harsh penalties on ride-hailing giant Didi.
Leer más »
Oil prices fall after unexpected rise in U.S. crude oil stocksOil prices fell on Thursday after an unexpected rise in U.S. crude oil inventories and as rising COVID-19 infections threaten demand, but prices held on to most of their gains from the previous session on expectations that supplies will remain tight through year-end.
Leer más »
U.S. Drops Visa Fraud Cases Against Five Chinese ResearchersThe Justice Department’s move marks significant setback in its effort to stop alleged Chinese intelligence-gathering at U.S. universities.
Leer más »
Stock Futures Put S&P 500 on Track for Weekly GainU.S. stock futures and European indexes gained and Asian markets were mixed at the end of a strong week for corporate earnings
Leer más »