Buy the Dip or Avoid Risk? Investors Disagree on Chinese Tech Stocks

Recent volatile moves by U.S.-traded Chinese technology stocks amid regulatory crackdowns in China prompted divergent moves by institutional investors: Some bailed out, and others doubled down.

Hillhouse Capital Group, for example, dumped all its holdings in Chinese ride-hailing platform Didi Global Inc., gaming giant NetEase Inc. and tutoring leader New Oriental Education & Technology Group Inc. It also slashed its stakes in Chinese low-cost retailer Miniso, delivery carrier ZTO Express Inc., electric-car maker XPeng Motors, video-sharing website Bilibili and e-commerce platform Pinduoduo Inc., according to filings Monday with the U.S. Securities and Exchange Commission.