Alibaba Group Holding Ltd. led decliners as a gauge of Chinese technology shares entered a bear market. The index dropped 20% from its October high. The Hang Seng Tech Index fell 3.4% on Tuesday.
Investor worries primarily fueled the decline. Investors fear the Chinese government might increase the value-added tax (VAT) for internet services companies. This potential regulatory action exacerbated existing concerns over China's economic weakness and the lack of significant growth stimulus.