Tech giants fined for misreporting past transactions

Shares in Chinese technology giants have fallen this week as Alibaba Group Holding Ltd. and Tencent Holdings Ltd. have been penalized by regulators for previous transactions.

The sell-off is part of broader weakness in Chinese stocks

The losses came after China’s State Administration for Market Regulation punished two IT behemoths for failing to properly disclose previous transactions, demonstrating how vulnerable investors’ opinions toward the sector remain despite hints of regulator softening.

“The latest sell-off is being driven by reports of new antitrust fines in the industry, and we expect stock volatility to continue as a general rule,” said Justin Tang, head of Asian research at United First Partners.