Experts warn of future risks for stocks

There are also concerns that technology companies will have to change their business practices before the groundbreaking policies take effect. Such regulations include data collection practices, online content and the use of algorithms to target users.

When Alibaba was fined in an anti-monopoly investigation earlier this year, regulators said they were investigating a practice that forces merchants to choose one of two ecommerce platforms, rather than letting them work with both. The Chinese market regulator said the practice is stifling competition.

“Companies will certainly have to be much more careful with certain activities,” says Bandsma of Vontobel.

“Acquisitions, especially of companies that could be seen as a threat to competition, will be scrutinized more closely. Demonstrating price power, especially among small merchants or consumers, will be more difficult to implement.”

But it’s still unclear whether this could have a meaningful impact on business models and ultimately profits.

In the short term, speed bumps could be lurking for Chinese internet companies.

Ultimately, analysts said, these tech giants, who have a history of adapting quickly to new regulatory environments, will be able to handle the whole raft of new regulations.

“The more diversified behemoths know better than anyone how to deal with new data regulations, and how to switch to different ways to monetize their users than anyone else,” Dennison said. “On the bright side, more Chinese regulations will further protect Chinese tech companies from any future foreign competition.”

Such regulation could also provide an opportunity for long-term and short-term investors.

“There are a number of companies that have extremely strong foundations and can play the long game. Regulations are broad and will eventually raise barriers to entry as well. Investors with patient capital will benefit greatly from choosing the right one,” Nuvest Capital’s Wang said , referring to long-term capital.

“Professional traders with a much shorter maturity can also benefit from the volatility and volatility premiums that come with it.”

However, one expert warned that regulatory uncertainty could mean foreign capital is less willing to fund Chinese tech companies. SoftBank CEO Masayoshi Son said this month that the company would cut back on new investments in China.

“What would that mean in terms of the continued continued competitiveness of China’s technology industry, or even other industries, if foreign capitals become increasingly aware of the risks associated with it, and then they are now pulling back?” Charles Mok, founder of Tech For Good Asia, a tech advocacy group, told CNBC’s “Beyond the Valley” podcast.

“I think that’s a concern in the long run.”