NEW YORK (BLOOMBERG) - More funds joined Mr George Soros' investment firm in lightening their exposure to US-listed Chinese companies in the second quarter, dodging a sell-off prompted by a state crackdown on everything from ride-hailing firms to education companies.

D1 Capital Partners, the investment firm run by Mr Dan Sundheim, sold its 25 million shares in New Oriental Education & Technology Group, while Soroban Capital Partners, the hedge fund firm co-founded by Mr Eric Mandelblatt, exited its 2.06 million share stake in Alibaba Group Holding, according to filings with the US Securities and Exchange Commission (SEC).

The filings show that some funds managed to sidestep, at least in part, the ugly July for Chinese stocks in the United States. The Nasdaq Golden Dragon China Index, which tracks 98 such companies, plunged 22 per cent last month.

Soros Fund Management exited many of its investments in American depository receipts (ADRs) of Chinese companies, including Baidu, Vipshop Holdings, Tencent Music Entertainment Group and IQiyi, positions it snapped up during the collapse of Archegos Capital Management in March and April.

Chinese tech stocks have seen a renewed sell-off in August as Beijing took further steps to tighten its grip on the nation's Internet giants.

The Hang Seng Tech Index dropped as much as 3.7 per cent on Tuesday (Aug 17), its fifth straight decline, after China's market regulator issued draft rules banning unfair competition among the nation's online platform operators.

SEC chair Gary Gensler also issued his most direct warning yet about the risks of investing in Chinese companies.

In US pre-market trading, Baidu ADRs sank 3.8 per cent, New Oriental dropped 5.3 per cent and TAL Education Group declined 5.6 per cent.