After the most recent fines, Tencent and Alibaba stocks fell

A day after receiving fines from Chinese regulators for their subsidiaries’ failure to disclose transactions and adhere to anti-monopoly laws, shares of Chinese technology companies Alibaba and Tencent plunged on Monday.

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A day after receiving fines from Chinese regulators for their subsidiaries’ failure to disclose transactions and adhere to anti-monopoly laws, shares of Chinese technology companies Alibaba and Tencent plunged on Monday.

Shares of social media and gaming business Tencent Holdings dropped 3.2 percent while e-commerce behemoth Alibaba’s shares in Hong Kong dropped 6.8 percent. Three percent was lost by the Hang Seng index.

China’s State Administration for Market Regulation published a list of 28 transactions that broke anti-monopoly laws on Sunday.

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It contained 12 transactions from Tencent and five from Alibaba. Hong Kong and Shanghai stock prices have frequently been affected by a broad crackdown on the technology industry. The maximum penalty in each case for infractions was 500,000 yuan ($74,500).

Hong Kong and Shanghai stock prices have frequently suffered from a widespread crackdown on the technology sector, but recent advances have been fueled by hints that the authorities may be relaxing up.

Before Monday’s declines, Tencent’s and Alibaba’s share prices had increased by 18% and 70%, respectively, since the middle of March.

“The dip is likely to be temporary. The market was more wary about the U.S. raising interest rates so sharply, but it’s just been overrun by the new fines,” said Francis Lun, an investment manager and veteran market commentator in Hong Kong.

The rise in coronavirus cases, which stoked worries about additional pandemic lockdowns in Shanghai, also unnerved investors, he added.