Chinese tech stocks fall again after 3-day rally

Chinese technology shares fell sharply, snapping a three-day rally as earnings from a number of firms missed investor targets.

The Hang Seng Tech Index, which tracks China’s top 30 technology companies, fell about 2% on Thursday. The index was weighed down by Kuaishou Technology and AAC Technologies Holdings, which both fell by at least 10% after missing estimates.

The continued drop comes after the government’s shock ban last month of profits at tutoring companies, which triggered a selloff of about $1 trillion in Chinese shares listed globally. Investors are concerned that even with the huge loss in market value seen already, fragile sentiment leaves the technology sector vulnerable to further losses.