Global Investors Rejig Chinese New Economy Holdings

Global investment bellwethers such as BlackRock Inc. made major adjustments in their exposure to U.S.-listed Chinese stocks in the second quarter, with some trimming stakes in tech giants including Alibaba Group Holding Ltd. and NetEase Inc.

Institutional investors rejigged their positions in China’s new economy companies before news broke that Beijing had wrapped up a years-long crackdown on misconduct in multiple areas of the tech industry and rolled out a slew of measures supporting the private sector amid a flagging post-pandemic recovery. Both were key changes that introduced bursts of positive sentiment for offshore-traded Chinese equities.