Shares of Chinese insurance and banking firms fell sharply on Thursday, driven by market concerns over a potential tax crackdown in the region.
The sell-off highlights growing investor anxiety regarding regulatory and fiscal policy shifts that could impact profitability in the financial sector.
1% on Tuesday. That decline marked the steepest single-day drop for the internet and gaming giant in more than a year and acted as a catalyst for a wider sell-off across Chinese equities.
The decline in financial stocks adds to a week of heightened volatility across Asian markets.
Broader regional indices have been weighed down by fresh reports that the Trump administration is considering additional restrictions on Chinese technology firms, creating a headwind for risk sentiment across multiple sectors.
The pressure on financials follows a significant drop in tech heavyweight Tencent Holdings, whose shares fell 7.1% on Tuesday.
That decline marked the steepest single-day drop for the internet and gaming giant in more than a year and acted as a catalyst for a wider sell-off across Chinese equities.