An index of U.S.-traded Chinese stocks fell into bear territory, dragged by fresh concerns over companies removed from American exchanges.
The S&P/BNY Mellon China Select ADR Index slipped 6.4% Wednesday, bringing it 23% down its record hit on February 16. The index tracks depositary receipts for 48 major Chinese companies in the United States, including giants Alibaba Group Holding Ltd., JD.com Inc., and Nio Inc.
Analysts say Chinese tech stocks are partly struggling due to the threat of delisting and the heightened regulatory risk in their home country. Higher bond yields have also put pressure on valuations of fast-growing firms, and investors are entering more economically sensitive sectors.
The Securities and Exchange Commission has started to require accounting firms to let U.S. regulators review financial audits of overseas companies, as passed into law by the administration of former President Donald Trump.
