(Yicai Global) June 26 -- Shares of Chinese internet companies traded in the US plunged and the offshore yuan slumped against the backdrop of a wider sell off in US stocks yesterday as investors pulled funds following a report that the Trump administration plans to curb Chinese investment in American tech firms.

The US Treasury is drafting new rules to prohibit companies with at least 25-percent Chinese ownership from investing in US firms involved in "industrially significant technology," The Wall Street Journal reported on June 24, citing sources said to be familiar with the plans.

Among US-traded Chinese companies, game-streaming platform Huya lost about 12.2 percent, while video-streaming platforms iQiyi and Bilibili also retreated, falling 9.4 percent and 7.75 percent, respectively. E-commerce giant Alibaba Group Holding closed 5.33 percent lower.

Mobile-based social networking platform Momo fell 5.14 percent, while microblogging site operator Weibo closed down 4.95 percent.NetEase, JD.Com, Sina and Baidu also ended down.

The offshore yuan against the dollar stood at 6.5413 as of 4.59 p.m. yesterday, down 307 basis points from its price in New York late on June 22, marking eight straight sessions of declines.

US Treasury Secretary Steven Mnuchin yesterday said that the administration's proposed new limitation on investments would not specifically call out China, but would instead be aimed at "all countries that are trying to steal our technology." He branded the report by The Wall Street Journal and another by Bloomberg as "false, fake news."

US stock markets fell across the board amid growing investor concerns over the intensifying trade dispute between China and the United States. The Dow Jones Industrial Average fell 328.09 points, or 1.33 percent, to 24,252.80; the S&P 500 index lost 37.81 points, or 1.37 percent, to 2,717.07; while the Nasdaq Composite dropped 160.81 points, or 2.09 percent, to close at 7,532.01.

Editor: Ben Armour