Reuters reported that investors sold off China’s tech stocks on Friday, April 21.
Hang Seng Tech Index on the Hong Kong stock exchange plummeted 3.6% on Friday. The Nasdaq Golden Dragon China Index fell 5.2%.
Chinese tech stocks fell after the U.S. added 17 Chinese firms to the potential delisting list over the next three years. Among them are some tech names, such as Sohu.com and OneConnect Financial Technology Co.
The U.S. audit regulator wants to examine the documents of the U.S.-listed Chinese firms. But China denies, citing national security grounds.
China’s refusal is forcing its companies to face delisting risk under U.S. law.