The shares of BABA, BILI, and Pinduoduo were all down this afternoon after the Chinese government imposed fresh lockdowns in some areas of the country.
As a result, the Chinese tech stock sector was sliding today, with Pinduoduo tumbling 10.1% as of 2:26 p.m. There is an hour and a half later.
The State Administration for Market Regulation said that there were 28 violations of its anti-monopoly rules. The Chinese company was fined $372,000.
The image came from the same source as the one above.
The Chinese government's continued pressure on technology companies has been an ongoing concern for investors for a while now. The Chinese government has been trying to keep tech companies from getting too large.
The Chinese government's move over the weekend made investors fear that the government will hurt Chinese tech stock growth. The share prices of many tech companies fell today.
New COVID-19 lockdowns in Macau made matters worse for Chinese stocks. Macau, a city known for its casinos, is going to be locked down for a week due to a rise in coronaviruses.
Alibaba Group Holding Limited The investors worry that the Chinese economy will continue to be hurt, and thus put pressure on the top and bottom lines of the three companies. With the government seemingly committed to implementing lockdowns whenever there is a new COVID-19 case, investors don't have much hope that there will be a change in restrictions anytime soon.
Over the past year, the stocks of Alibaba, Bilibili, and Pinduoduo have fallen in value.
Some investors are concerned that some Chinese companies could be removed from the U.S. stock exchange. The U.S. government is threatening to kick some Chinese companies off of public exchanges if they don't comply with auditing regulations.
Those fears are constantly in the back of Chinese tech stock investors' minds, and with anti-monopoly fines being handed out, it appears that there is more to be worried about.
Chris Neiger has no position in any of them. Bilibili is recommended by the Motley Fool. There's a disclosure policy at the Motley Fool.
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