Kuaishou shares fell more than 12 per cent on Thursday after the short-video platform and TikTok rival reported weaker than expected second-quarter earnings, dragging other China tech shares lower and ending three days of gains for the sector.
Hong Kong’s Hang Seng Tech index, which tracks big ecommerce and internet companies including Alibaba and Tencent, dropped as much as 2.3 per cent after rising more than 9 per cent over the previous three sessions.
Investors had tentatively resumed buying stocks that had been hit by a wide-ranging regulatory crackdown, which has erased hundreds of billions of dollars from the stock market capitalisation of some of China’s most valuable companies. The Hang Seng Tech index is down more than one-quarter this year.