SHANGHAI—Chinese investors dumped stocks in acquisitive sectors such as entertainment, media and IT on Nov. 19 on concerns new regulatory demands and a slowing economy could force heavy write-downs for firms that overpaid for assets during the boom years.
The massive goodwill sitting on the books of Chinese listed companies—roughly 1.45 trillion yuan ($208.87 billion) by some estimates—threatens to worsen the financial woes of many small firms already struggling under margin call pressure.
