China’s intensifying regulatory crackdown crushed tech stocks for a second day on Tuesday.

The Hang Seng
HSI,
-4.22%

dropped 4.2% after falling 4.1% on Monday, in what’s been the steepest fall for the index since the coronavirus pandemic hit global markets in March 2020. The selling in Hong Kong accelerated toward the end of trading.

China’s multi-pronged attack on its high-flying companies extended to Meituan
3690,
-17.66%
,
which fell 18% after new rules were issued requiring online food platforms to ensure their drivers are paid at least the minimum wage.

China’s technology giants continued to reel, with Tencent Holdings
700,
-8.98%

losing 9% and Alibaba Group
9988,
-6.35%

BABA,
-7.15%

losing 8%. Alibaba Health Information Technology
241,
-18.52%

dropped 19%.

The late dive for the Hang Seng pressured U.S. stock market futures
ES00,
-0.41%
,
which turned negative. Futures on the Nikkei 225
NIY00,
-0.82%

also turned lower after a positive close for the Japanese market
NIK,
+0.49%
.

“A sense of caution is likely to linger across markets as investors adopt a guarded approach due to the Asian volatility and Federal Reserve policy meeting on Wednesday,” said Lukman Otunuga, senior research analyst at FXTM.

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