U.S.-listed shares of several China-based tech-related companies fell on Thursday after Beijing found that 43 apps illegally manipulated user data and ordered their companies arrays that solve the problem.
Alibaba (NYSE: BABA ) Holding fell 6.3%, while Tencent (HK: 0700 ) Music Entertainment Group lost 6.9% and video streamer iQiyi shed 4%.
The IShares China Largecap ETF and the iShares MSCI China ETF fell 1.6% and 2.1%, respectively.
The move by China’s Ministry of Industry and Information Technology was the latest in a months-long regulatory crackdown affecting e-commerce, video games, transportation apps, cryptocurrencies and other sectors.
On Tuesday, Beijing’s antitrust regulator unveiled sweeping draft rules targeting data-rich companies, in a bid to tighten its grip on its tech sector.
Looking ahead, investors anticipate the possibility of reforms affecting the healthcare sector, as well as tough new data security laws.