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The NASDAQ Golden Dragon China Index of US-listed Chinese stocks, which include major Chinese tech giants such as Alibaba (NYSE:BABA), JD (NASDAQ:JD).com, Baidu (NASDAQ:BIDU), fell 4.6% on Friday, its biggest decline since March.
Policymakers in Beijing detailed new guidelines seeking to address stock-market volatility, including tighter supervision of companies looking to list in China.
Sentiment on Chinese stocks were further soured after two brokerages Citic Securities and Haitong Securities came under a regulatory probe for alleged law violations.
The move to a less market friendly policy stance from Beijing comes at a time when foreign investors continue to head for the exits amid ongoing worries about China’s recovery, rising geopolitical tensions and fears about a potential housing crisis.
Economic worries were further exacerbated on Friday after the latest data showed that import and export activity in March fell well short of economists estimates.
