China Tech Stocks Sink as Alibaba, Tencent Suffer Fresh Fines

Chinese tech stocks fell sharply Monday, weighed by a selloff in Alibaba Group Holding Ltd. and Tencent Holdings Ltd. after the two firms received a regulatory fine on past transactions.

The Hang Seng Tech Index dropped as much as 3.7%, with Alibaba among the top losers after plunging 6%. Tencent fell a maximum of 3.2%.

The losses came after China’s State Administration for Market Regulation fined the two tech giants for not properly reporting past deals, indicating how fragile investor mood remains toward the sector despite signs of easing regulatory headwinds. The declines also formed part of the broader weakness ...