Outside Alibaba’s office. (Photo: Reuters)8/
According to Bloombergthese two technology giants account for more than half of the total capitalization of $2.1 trillion that has been “evaporated” of all stocks in the Hang Seng index basket, since the peak in February 2021.
Chinese technology shares fell sharply as US officials monitored more closely, along with moves to tighten control by the Beijing government. Some Chinese technology companies are also facing the risk of being delisted on Wall Street.
An index that tracks Chinese shares listed in the US is trading at its lowest level since 2013, after falling more than 10% for three straight sessions.
In 2020, the total market capitalization of Alibaba, Tencent and Ant add up to nearly $2 trillion — much larger than the state-owned giants combined. This makes the Chinese government concerned about the “expansion” of Big Tech when they hold a huge store of data from hundreds of millions of users.
Although it is difficult to predict the next step of Chinese officials, experts say that the Beijing government will likely strengthen its monitoring of M&A deals with hundreds of companies. startups backed by tech giants.
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