(Bloomberg). — Chinese tech stocks fell as Hong Kong market reopened following a holiday. They were forced to confront renewed regulatory risk and growth concerns, triggering another round of selling.   

Tech Index dropped almost 7% Tuesday morning, heading for another session of losses. All key equities gauges in the region fell, including the Hang Seng China Enterprises Index which measures large Chinese businesses in the area. It dropped more than 4%.   

A global selloff has intensified since the Federal Reserve increased rates by 50 basis point last week. China is showing no signs of letup in its stringent Covid Zero policy that’s already hurt businesses, and there are growing indications the damage is rippling through the global economy.

Meanwhile, Chinese regulators tightened their hold on the internet sector over the weekend by banning young users from sending gifts via livestream platforms. This latest decision came after a series of promises made by authorities about easing their grip on the sector, which put investors back on edge.

While Hong Kong’s market was shut for a public holiday on Monday, Chinese Premier Li Keqiang warned of a “complicated and grave” employment situation as Beijing and Shanghai tightened curbs on residents in a bid to contain Covid outbreak. Meantime, BlackRock Inc (NYSE:). jettisoned its bullish stance on China, saying Covid lockdowns jeopardize the nation’s economic growth.  

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