Emerging-market stocks fell on June 11. The MSCI Emerging Markets Index dropped as much as 1.6% before narrowing its loss to 0.4%.

A Beijing regulatory warning hit Chinese ecommerce shares and renewed Middle East tensions hurt sentiment.

The trigger was a summons from the Beijing branch of China’s State Administration for Market Regulation to Alibaba Group Holding, JD.com, PDD Holdings, ByteDance, and Xiaohongshu Technology.

The companies were questioned over false advertising and misleading promotions tied to the 618 shopping festival.

Authorities said some subsidy claims lacked detail, and no public fines were announced.

The move added to concerns about broader regulatory scrutiny. China has already introduced rules barring large platforms from pressuring merchants into promotions or discount campaigns.

The broader MSCI Emerging Markets index was also weighed down by geopolitical risks and expectations that the US Federal Reserve would keep a hawkish stance.

🔗 Source: Bloomberg