South China Morning Post
March 15, 2020
China tech rout: Hong Kong market sinks after JPMorgan calls sector ‘uninvestable’ as global funds shun macro, geopolitical risks
- Losses snowballed as JPMorgan cites macro and geopolitical risks while global funds prepare to flee China internet bets
- Hang Seng Index hit a new six-year low as more than US$460 billion of market value from tech stocks evaporated this year; Alibaba crashed by a record 12 per cent
Chinese tech stock rout deepened, slashing billions of dollars from the likes of Alibaba Group Holding and Tencent Holdings in Hong Kong, on heightened concerns about an industry crackdown, Covid-19 outbreaks, and China’s position on the Ukraine conflict.
Losses spiralled after JPMorgan Chase downgraded 28 Chinese internet stocks including Alibaba, Tencent Holdings and Meituan to underweight, calling them “uninvestable” over the next six to 12 months due to rising geopolitical and macro risks, Bloomberg reported.
South China Morning Post
CHINA MARKETS IN PERIL
