A further step by the Securities and Exchange Commission toward forcing companies from China off American exchanges helped trigger the worst decline in U.S.-listed Chinese stocks since the global financial crisis, and sparked a second selloff in Hong Kong.
The steep drops add to a punishing period for Chinese shares—some of which have now lost 40% or more in value over the last six months. They have already been buffeted by a series of regulatory crackdowns from Beijing, and have been caught up in the broader market unease sparked by elevated inflation, the war in Ukraine and the prospect of rising U.S. interest rates.
The Nasdaq Golden Dragon China Index of China-focused U.S.-listed companies closed 10% lower Thursday. That took the index, which includes many American depositary receipts, to its lowest since 2016, and marked its biggest one-day percentage decline since October…
