Tencent, Alibaba Have Erased $1 Trillion in Value Over Last Year
- Two giants account for half of Hang Seng Tech loss since peak
- Tech has borne brunt of China’s equity plunge amid crackdown
The two tech powerhouses account for more than half of the $2.1 trillion in total losses for Hang Seng Tech Index members since the gauge’s February 2021 record high, data compiled by Bloomberg show. Technology stocks have borne the brunt of China’s equity plunge over the past year as Beijing extends its regulatory crackdown.
The Hang Seng Tech Index has tumbled 65% since its peak on China’s moves to curb the sector’s profitability. Stocks have also been hammered by concerns of weak revenue growth amid an economic slowdown and the possibility that Chinese companies could be forced to delist from U.S. exchanges as heightened global geopolitcal tensions further fray relations between the two nations.
Tencent, Alibaba lead market cap losses in China’s tech rout
Author: Jeanny Yu, Bloomberg