Big-name Chinese Internet stocks hit the skids Monday as business regulators in Beijing fined Alibaba ( NYSE: BABA ) and Tencent Holdings ( OTCPK:TCEHY ) for improperly reporting some of their past acquisition deals.
On Sunday, China’s State Administration for Market Regulation, levied the fines saying the companies involved were in breach of the country's competition laws . The moves came amid what has been a ongoing back-and-forth between China's business regulators and many of the country's best-known tech companies over matters such as the use of customers' personal information and governmental oversight of China's tech sector.
Alibaba ( BABA ) took in on the chin, as its shares fell almost 9% , while Tencent ( OTCPK:TCEHY ) was down by nearly 4% .
Meanwhile, other Chinese tech stocks retreated, with JD.com ( JD ) down by 5% , Weibo ( WB ) was off by almost 9% , Baidu ( BIDU ) dropped by more than 5% and NetEase ( NTES ) shares gave up more than 4% .
The KraneShares CSI China Internet ETF ( KWEB ) fell more than 6% .
Monday's declines were in sharp contrast to gains among Chinese tech stocks last week as Beijing was said to be considering a $220B stimulus package to boost infrastructure in the country .
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Alibaba, Tencent lead wide swath of Chinese tech-stock losses