(CNBC) Tencent led Chinese stocks in Tuesday’s plunge, shedding about 3.5%, after Beijing issued draft rules to tame unfair competition among technology firms. Jack Ma’s Alibaba fell 2.5%.
China’s draft rules were published by the State Administration for Market Regulation and covers areas such as prohibitions on how internet firms use data.
The draft rules by the regulator also seek to end fake product rules. Operators are also prevented from using data or algorithms to obtain and analyze competitors’ trading information.
SAMR could also use third-party providers to audit a company’s data on suspicion of failing to comply with the rules.
SAMR will obtain public opinion on the draft rules until September 15 in what is seen as a continued push to tighten antitrust rules in the country.
CSI 300 is down -2.10%, USDCNY is up +0.08%.
