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Chinese EV makers plunge as investors watch Beijing's regulatory squeeze tighten across industries

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Chinese EV makers plunged Tuesday as investors continued to mull over Beijing's regulatory squeeze that has tightened across industries and rattled global markets. 

Shares of Xpeng dropped nearly 17%, while Nio fell as much as 10% Tuesday. Meanwhile,  Li Auto dropped as much as 14%, and Niu Technologies shed 16%. 

While there was no new regulation directed towards the country's electric-vehicle makers, the downward movements in stock prices appear to be a part of a broader sell-off in US-listed Chinese stocks

China's increased scrutiny on certain businesses began late 2020 following the abrupt cancellation of Ant Group's IPO. A clampdown on the fintech giant then spread to Alibaba and Tencent earlier this year, with both getting hit with anti-monopoly measures and fines.

Since then, newly public ride-hailing firm Didi has been hit with regulatory actions by China, which has cited data-security concerns. Regulation that could prevent publicly-listed companies from teaching school curriculum has also hit Chinese education companies hard in recent days. 

Beijing's crackdowns on its technology and education sectors have erased $769 billion in value from U.S.-listed Chinese stocks in the last five months, according to Bloomberg data. 

 

 

 

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