Two giants account for half of Hang Seng Tech’s losses
Since the sell-off of Hong Kong shares began 13 months ago, Tencent Holding Ltd. and Alibaba Group Holding Ltd., the two largest Chinese digital companies, have lost more than $1 trillion in combined market value.
According to Bloomberg, the two titans are responsible for more than half of the 2.1 trillion declines in the Hang Seng Tech Index since its all-time high in February 2021.
Tech hit by falling stocks amid Chinese crackdown
Because of China’s attempts to limit the sector’s profitability, the Hang Seng Tech Index has dropped 65 percent from its high.
The drop in China’s stock market over the last year has harmed tech stocks as Beijing tightens its regulatory controls.
Concerns over lackluster profit growth amid the economic slump, as well as the potential of Chinese businesses being delisted from US markets, weighed on stocks.