Since investors began selling Hong Kong stocks about 13 months ago, Alibaba Group Holding Ltd (NYSE: BABA) and Tencent Holdings Ltd (OTCMKTS: TCEHY) have lost over $1 trillion collectively. This figure accounts for nearly half of the total losses by members of the Hang Seng Tech Index.

The index has declined for various reasons. One of them is China’s crackdown on big tech companies that has led investors to sell their stock. There has also been an economic slowdown in China which has limited revenue growth. Many investors now fear that Beijing could ask the companies to remove their stock from U.S exchanges as tensions over Ukraine increase.

Analysts advise against buying Alibaba stock

Even though Alibaba’s share value has tumbled by 30% in the past year, the company is still one of the most prominent big tech companies in the country. Moreover, Alibaba is still making significant investments. One such investment is cloud computing.

For this reason, investors struggle to decide whether they should purchase Alibaba stock. Analysts advise that investors stay away from buying its stock. While the company’s business is performing increasingly better, the regulations from China present even more considerable risk.

In addition, the Securities and Exchange Commission (SEC) has named five Chinese companies it could delist if they don’t present the regulator with details supporting their financial statements. This move is in line with an act that requires foreign companies to state whether they are government-controlled or not.

Not long after performance improved from Chinese stock like Alibaba Group Holdings, the Chinese stock market has dipped again. The decline is due to worry about China’s relationship with Russia. Investors also fear more regulatory actions by Beijing.

U.S officials recently revealed that Russian President Vladimir Putin had asked the country for assistance as it invaded Ukraine. Investors are now worried that if China helps Russia, it could lead to sanctions against Chinese companies.

Ant Group sell its media company

Meanwhile, Ant Group, which Jack Ma owns, has sold its 36kr Holdings Inc shares to comply with Beijing’s regulations. This move comes as big tech companies in China try to appease regulators.  China has repeatedly asked Alibaba, and its affiliate, Ant Group, to sell its news-related enterprises.

Ant Group has owned 15.1% of th36kr Holdings’ shares since 2015. After it announced the transaction, the media company declined by 90%.