Here's Why Chinese Tech Stocks Sank This Week

Regulators took aim at DiDi Global (NYSE: DIDI), a company that went public early this month and is sometimes referred to as the "Uber Technologies of China." The company was ordered by the country's main internet regulatory agency to stop signing up new users on July 2. A couple of days later, DiDi revealed it had also been ordered to remove its applications from China's mobile app stores. The developments triggered substantial pullbacks for many Chinese tech stocks last week.

UP Fintech Holding (NASDAQ: TIGR), ACM Research (NASDAQ: ACMR), Lizhi (NASDAQ: LIZI), and Zhihu (NYSE: ZH) were among the names to suffer double-digit sell-offs across the period. National tech giants including Tencent Holdings and Alibaba Group Holding also saw their stocks slide, with their share prices falling 5% and 7.2%, respectively, according to data from S&P Global Market Intelligence.