Trillion-dollar stock decline in Chinese firms shows buyers cautious

The trillion-dollar decline in Chinese technology stocks marks a $1.1 trillion drop in the market value of Internet giants since February. Investors are deeply concerned about large technology, electric car manufacturers, and streaming services.

A round of regulatory challenges has fundamentally shaken this argument. Only after Beijing promised to strengthen its control over data collection and foreign trade this week, the market value of China’s Internet industry stocks fell by about $200 billion.

According to Bloomberg’s calculations, the index fell by more than $1.1 trillion from the February 17 high, and the index fell 35%. Since February, China’s Internet stock indicators have fallen by more than one-third.

Trillion-dollar stock

China’s key to data-driven giants such as Didi Global has created a new round of uncertainty for investors who have been under scrutiny in areas such as financial technology, antitrust practices, and extracurricular learning.

In addition to large-scale technology, stocks related to real-time marketing, electric vehicle manufacturing, and education also appear vulnerable. “Given the uncertainty of the degree of regulatory tightening, it is currently impossible to set an appropriate or acceptable discount,” said Catherine Chan, a Hong Kong analyst at Union Bancaire Privée.

“It is possible to further simplify existing research and research in new areas,” he said. Beijing’s control of data collection may affect industries from grocery delivery to transportation and online entertainment to financial technology and online markets.

Online marketing platforms have become “very popular” and may become another area of ​​activity. Zurich GAM fund manager Jiang Shi-Cortez said that Kuaishou Technology, one of China’s most popular live broadcast platforms, fell 17% this week.

The worst since February. Market Chinese technology stocks fell by US$1 trillion, indicating that buyers are skeptical of Ishik Mukherjee at 5:30 am on July 10, 2021. GMT +5:30 Since February, the market value of Internet giants has evaporated by $1.1 trillion.

The stock market has devalued China’s technological repressive measures. Still, a new round of regulatory concerns has completely shaken this argument: this week alone, the market value of Chinese Internet stocks has fallen by approximately $2001 billion.

How does Beijing promise to strengthen control over overseas data collection and listing?

China’s Internet stock index has fallen since China began to collect data from giants such as Didi Global. According to Bloomberg’s calculations, it is down more than $1.1 trillion from its February 17 high. The index is down 35%.

This has brought a new round of uncertainty to investors who have been scrutinized in areas such as financial technology, antitrust laws, and extracurricular learning. In addition to large technology stocks, stocks from real-time marketing, electric vehicle manufacturing, and education also appear vulnerable.

“Given the uncertainty of the degree of regulatory tightening, it is currently impossible to determine an appropriate or acceptable discount,” said Catherine Chan, an analyst at Union Bancaire Privée in Hong Kong.

“It can strengthen existing research” and study new areas,” he said. Beijing’s data-oriented Chinese technology collapse funding, the United States Beijing’s control of data collection may affect industries from grocery delivery, transportation, and online entertainment to the Internet and financial technology markets.

According to Genesis Cortes, direct selling platforms have “become very popular” and may become another area of ​​regulatory concern.

Kuaishou Technology, one of China’s most popular live broadcast platforms, fell 17% this week, the biggest drop since February. It potentially collects and analyzes vehicle operating data.

 

Image courtesy of Bloomberg Markets and Finance/YouTube

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