DJ Regulatory Risks Remain for Chinese Internet Companies, MS Says -- Market Talk
0418 GMT - Chinese internet companies may continue to be weighed by regulatory risks, Morgan Stanley says, as it doesn't see an end to the country's current regulatory tightening process. It downgrades the Chinese e-commerce sector to underweight from equal-weight. The bank notes that 34 internet companies were ordered to rectify their anti-competitive practices in April. In addition to antitrust investigations, MS says regulators are also taking action against online financial platforms and education companies. U.S.-listed Chinese tech stocks could also be vulnerable to de-listing if they are found to be not compliant with U.S. audit requirements for at least three years, it adds. The Hang Seng Tech Index is down 6.4% month-to-date. (yiwei.wong@wsj.com)
(END) Dow Jones Newswires
May 18, 2021 00:18 ET (04:18 GMT)
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