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Fresh Scrutiny of Alibaba Sends China Tech Stocks Into Tailspin

  • Company execs reportedly called in to discuss data breach
  • Report helped send Hang Seng Tech Index 3.2% lower on Friday
Updated on

Investors in China’s tech shares just got another reminder that regulatory scrutiny into the sector is unlikely to go away anytime soon despite a concerted effort by authorities to shore up a flagging economy.

On Friday, Alibaba Group Holding Ltd.’s stock tumbled 6% on a report that company executives had been questioned in relation to the country’s largest known cybersecurity breach. The Hang Seng Tech Index slumped 3.2%, taking its weekly drop to 7.7% which was the largest decline for the period in over two months.