(ZEROHEDGE) – Though the mass resignation of pro-democratic lawmakers from Hong Kong’s LegCo will likely dominate China-related headlines in the west on Wednesday, it’s notable that Chinese tech stocks took a serious beating during today’s session, with the sector losing almost $254 billion in value as banking watchdog focuses on fintech monopolies.
The tech-heavy ChiNext index in Shenzhen fell 2.9%, while Shanghai’s Star 50 index dropped 2.7% on Wednesday, after a top official with the China Insurance and Banking Regulatory Commission said he would be taking a “close look” at fintech monopolies. The selloff stretched to Hong Kong, where shares in Alibaba dropped 8.3%, extending the company’s two-session loss to 13%.
Of course, this shouldn’t be a surprise, even for westerners, since the CCP has already telegraphed its intentions to rein in China’s tech billionaires before they become too powerful to control.
