Why Alibaba, Tencent, and JD.com Stocks Dropped Today
Chinese internet stocks were hit hard on Tuesday. By the close of trading in the U.S., shares of Alibaba Group (NYSE: BABA), Tencent Holdings (OTC: TCEHY), and JD.com (NASDAQ: JD) were down 8.3%, 6.1%, and 5.6%, respectively.
China's government is taking steps to reign in the power of its largest internet companies. China's State Administration for Market Regulation released a draft of rules designed to inhibit the ability of internet platforms to engage in monopolistic behavior. The rules are expected to apply to online retail marketplaces operated by the likes of Alibaba and JD.com, as well as digital payment platforms such as Tencent's WeChat.
Chinese internet stocks sank on regulatory concerns. Image source: Getty Images.
Source Fool.com
