China expands power in cyberspace with new rules on digital platforms

TSMC overtakes Tencent to become Asia's most valuable company; Alibaba at record low in HK

The rout in Chinese technology giants deepened on Thursday after the industry was hit with a fresh round of proposed regulations.

The Hang Seng Tech Index closed 2.9 per cent lower after earlier falling to lowest since its inception in July 2020 with Alibaba Group slumping 5.5 per cent to a record low in Hong Kong. China’s market regulator issued draft rules aimed at stopping unfair competition on the internet, as Beijing continues its broad crack down on the country’s technology sector. Top antitrust regulator the State Administration for Market Regulation issued sweeping draft rules governing online competition as the cabinet updated rules for operators of information infrastructure that experts say target data-rich firms. Sentiment also soured after Tencent warned the industry to prepare for more regulations including potential substantial changes to how firms use data for advertising.

Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) has overtaken Tencent to become Asia’s most valuable firm, CNBC reported. The Taiwanese chipmaker is now sitting at the top spot by market capitalisation — among Asia firms — at more than $538 billion, according to Refinitiv Eikon.