(Yicai Global) March 25 -- Chinese technology stocks took a hammering after the US securities regulator pushed ahead with applying a Trump-era financial accountability law that could see foreign firms booted off exchanges in the United States.

In Hong Kong today, dual-listed tech giants such as Alibaba Group Holding, Baidu, and JD.Com dropped following losses in New York yesterday, when the shares of more than 40 US-listed Chinese tech stocks, including Tencent Music and Vipshop, plunged more than 10 percent, according to Wind data. 

The rout followed the US Securities and Exchange Commission’s adoption of the Holding Foreign Companies Accountable Act, a law which could result in non-US businesses being delisted if they do not open their books to the Public Company Accounting Oversight Board. The move also comes at a time when China is clamping down on monopoly behavior by its own internet titans.

E-commerce platform operator Alibaba fell 3.9 percent in Hong Kong after its New York stock lost 3.4 percent. Baidu, which runs China’s leading search engine, plunged 9.7 percent after an 8.6 percent decline on the Nasdaq. Online retailer JD.Com was down 3.6 percent. Its Nasdaq-listed shares gave up 5.3 percent.

In New York, e-commerce to electric vehicle stocks retreated. Vipshop dived 21.4 percent, its steepest decline since August, while Pinduoduo slid over 8 percent. Tencent Holdings' music streaming arm Tencent Music dove 27.1 percent, its biggest-ever drop, while video site iQiyi also suffered its biggest intraday slump of 19.9 percent. XPeng fell 15 percent, Li Auto shed 13 percent, and Nio lost 10 percent.

Many Chinese companies may be motivated to list in Hong Kong just like Alibaba and JD.Com before them, Brad Loncar, founder of Loncar Investments, told Yicai Global. Their American Depositary Receipts could be converted to Hong Kong or mainland shares, he added.

Twelve US-listed Chinese companies have also listed in Hong Kong as of yesterday.

Chinese firms listed abroad are expected to pick up the pace of share flotations in China as stock connect schemes between Hong Kong and the mainland bring their advantages to full play for institutional investors with record high capital inflows, according to China Galaxy Securities.

Editor: Emmi Laine, Xiao Yi