Chart of the Day: Chinese Tech Stocks Tumble
It has been a tough year for Chinese internet and technology stocks as the trade war between the world’s two largest economies rumbles along. The market has been shaken by concerns that the White House’s ultimate goal in the trade war is preserving America’s technological dominance — alongside domestic regulatory issues, competition and threats to firms’ reputations.
Graphic: Gao Baiyu/Caixin
Nasdaq-listed internet giant Baidu Inc. and Hong Kong-listed social media behemoth Tencent Holdings Ltd. have both lost more than 20% of their value in this year. In August, Tencent lost nearly $40 billion from its market cap after China’s gaming regulator — which has approved no new releases since March — ordered it to pull the hit game “Monster Hunter: World” from its online gaming platform just days after its release. And Baidu’s shares have lost nearly a third of their value from a peak in early July since Google, its one-time rival in China’s search market, announced in October it was planning a return.
E-commerce giant JD.com Inc. has seen the price of its Nasdaq-listed shares decline 52.5% this year, leaving it with a market cap of $29.3 billion. JD.com founder and chief Richard Liu has been accused of rape, which has raised investors’ concerns about how tightly the company is tied to its founder.
Group-buying site Pinduoduo has witnessed a loss of 20.5% of its share price, cutting its market cap on the Nasdaq to $23.5 billion. The company has been dealing with accusations that it sells knockoffs.
Contact reporter Tang Ziyi (firstname.lastname@example.org)
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