TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Floods blamed as gov’t falls behind in set-top box roll-out

      24 June 2022

      Vumacam announces big Jo’burg expansion drive

      24 June 2022

      Eskom crisis spirals: stage-4 power cuts this weekend

      24 June 2022

      Illegal strike at Eskom could make load shedding worse

      24 June 2022

      State capture probe ends but South Africa remains ‘broken’ by corruption

      23 June 2022
    • World

      Amazon has a plan to make Alexa mimic anyone’s voice

      24 June 2022

      Apple, Android phones hacked by Italian spyware

      24 June 2022

      Zendesk nears buyout deal with private equity firms

      24 June 2022

      Crypto crash survivors could become ‘tomorrow’s Amazons’

      23 June 2022

      Tether to launch a stablecoin tied to the British pound

      22 June 2022
    • In-depth

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022

      Everything Apple announced at WWDC – in less than 500 words

      7 June 2022

      Sheryl Sandberg’s ad empire leaves a complicated legacy

      2 June 2022
    • Podcasts

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022

      Everything PC S01E04 – ‘The story of Intel – part 2’

      1 June 2022
    • Opinion

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022

      How AI is being deployed in the fight against cybercriminals

      8 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Sections»Investment»China’s tech selloff deepens

    China’s tech selloff deepens

    Investment By Agency Staff11 March 2022
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    Chinese tech shares tumbled, tracking overnight weakness in their US peers, as renewed regulatory concerns unnerved investors still reeling from wild price swings this week.

    Hong Kong’s Hang Seng Tech Index plunged as much as 7.1% in early trading, the most since July. JD.com and Trip.com were among the worst performers. Meanwhile, the benchmark Hang Seng Index slumped 3.3%.

    Friday’s selloff comes as the US Securities and Exchange Commission identified five Chinese firms this week that could be subject to delisting if they failed to comply with certain auditing requirements. The Nasdaq Golden Dragon China Index sank 10% overnight, its biggest slide since October 2008, even as the Chinese securities regulator said it will cooperate with the US.

    Since its February 2021 peak, the China tech gauge has slumped more than 60%

    While analysts say the risks of delisting is unlikely to materialise in the near term, the news unnerved investors already on edge following Beijing’s yearlong crackdown and the fallout from the war in Ukraine. Since its February 2021 peak, the China tech gauge has slumped more than 60%.

    The SEC update is “a reminder for the regulatory risks surrounding Chinese equities once again and the lack of positive catalysts overnight may potentially aggravate the downside move,” said Jun Rong Yeap, a market strategist at IG Asia.

    Equity benchmarks in Hong Kong and onshore were hit with a fresh bout of volatility this week, with prices swinging sharply intraday. Beijing’s crackdown on private enterprise has appeared to grow in recent weeks after authorities asked food delivery platforms to cut fees charged to restaurants and warned of risks in investing in products linked to the metaverse.

    Outlook

    The outlook for Hong Kong stocks took a turn for the worse earlier this week after Norway’s sovereign wealth fund announced it was excluding Li Ning due to the risk that the sportswear maker contributes to serious human rights violations in China’s Xinjiang, fuelling worries about a potential retreat of other long-term investors.

    “I think now people are quite concerned about the foreign funds exiting from China because we have already seen one case in Li Ning,” Alex Wong, director of asset management at Ample Capital, said on Friday. “So that is something which is quite new to the market. And of course regulatory risks remain.”

    Meanwhile, China’s CSI 300 Index declined as much as 2.2% on Friday.  — Chloe Lo and John Cheng, (c) 2022 Bloomberg LP

    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticlePrivacy automation in the age of Popia: you are invited
    Next Article Russia cut off from global tech – what happens next

    Related Posts

    Floods blamed as gov’t falls behind in set-top box roll-out

    24 June 2022

    Vumacam announces big Jo’burg expansion drive

    24 June 2022

    Eskom crisis spirals: stage-4 power cuts this weekend

    24 June 2022
    Add A Comment

    Comments are closed.

    Promoted

    Watch | Telviva One: adapting to the requirements of business

    24 June 2022

    Huawei P50 now available for pre-order in South Africa

    23 June 2022

    Calabrio paves way for SA’s cloud contact centre WFO journey alongside AWS

    23 June 2022
    Opinion

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    A proposed solution to crypto’s stablecoin problem

    19 May 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.