Investors are reviewing their record holdings of mainland internet companies after Beijing proposed sweeping new antitrust rules for China’s technology industry.
Leading groups including Tencent, Alibaba and Meituan-Dianping have attracted record investment during the Covid-19 pandemic, according to data from Copley Fund Research, which tracks the investment activities of more than 180 of the world’s largest funds.
But Louise Dudley, a portfolio manager at Federated Hermes, said the combination of new regulations and a move by the Trump administration to prohibit American investors from investing in companies with suspected ties to the Chinese military, had heightened risk.