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Massive Selloff Hits US, HK-Listed China Health Cos, Clouds Sunny Prospects

Regulatory Crackdown Sours Sentiment

 
• By Brian Yang

Both Nasdaq- and Hong Kong-listed shares in Chinese health-related companies have been free falling with heavy volumes, after foreign investors spooked by China's general crackdown on the tech sector rushed to exit. The two-day sell-off shows high uncertainty and investors' anxiety over the regulatory overreach but underlying fundamentals still seem strong.

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US-LISTED BIOTECH DROP 20% AS SELLOFF HITS CHINESE HEALTH PLAYERS • Source: Alamy

The jettisoning of stock started with DiDi, China’s largest ride-sharing service provider that recently went public in the US. But the end is yet to be seen.

Starting with the tech sector, then spreading to logistics and online tutoring service providers, China's health-related sector is now being hit hard by a massive sell-off, even though the Chinese regulatory clampdown is targeting other industries

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