Chinese technology giants Tencent Holdings Ltd. and Alibaba Group Holding Ltd. have lost more than $1 trillion in combined market value since the selloff in Hong Kong stocks began 13 months ago.
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 US exchanges as heightened global geopolitcal tensions further fray relations between the two nations.
© 2022 Bloomberg