Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
tech giants
Stock Market

China’s tech giants are losing market value

14.03.2022
2 min read

Chinese tech giants are getting cheaper amid the country’s tightening policies

China’s largest tech giants are going through tough times. In the first six months, their total capitalization fell by $831 billion, and the decline in market value may continue in the future. The reason is the introduction of new rules for companies in the IT sector by the Chinese government.
Representatives of the segment, whose shares are traded on foreign stock exchanges, have fallen under the strict supervision of the local authorities. Beijing explains its actions by the desire to prevent illegal activities in the securities market. The government will monitor the cases of financial fraud, various schemes of market manipulation and insider trading.
This news did not go unnoticed on the stock exchanges. On the Hong Kong trading floor shares of Chinese giants went down sharply. Among them was Alibaba holding, whose securities fell by 1.7%, Baidu – more than 2%, and others.
According to analysts, the sale will continue in the third quarter, as investors get rid of stocks of companies. At the same time, the Chinese authorities are not going to stop and introduce more and more stringent rules and requirements to strengthen oversight of local corporations listed outside the country.China's tech giantsNot long ago, the Chinese state organization in charge of cyberspace issues initiated an audit of the Didi cab service. The main reason for this was the government’s doubts about the security of the company’s personal data storage. However, this all happened a few days after Didi went public in New York. The regulator demanded that the service’s app be removed from Chinese app stores, which caused the company’s shares to drop by almost 25%. It also sparked a wave of outrage from investors, who wanted to take their assets out of the service.
The authorities began taking an active interest in the technology sector in late 2020. At that time, the government insisted on suspending the IPO process for the startup Ant Group, a subsidiary of Alibaba Holding. This happened just days before the IPO, which caused significant damage to the business. In the spring of 2021 Alibaba was fined $2.8 billion because of antitrust violations. This amount was a record for the technology sector. In June of that year, the Chinese government approved a data security law. It regulates how companies collect, process and store data. In addition, a personal information protection law is being drafted, which could further restrict the activities of large corporations.
This situation has led to a downturn in China’s IT market, and companies fear even more government interference in business.

Tags: Stock Market
0
Previous Post How Danone discovered yogurt to the world Next Post Philippine Stock Exchange prepares to launch operations with cryptocurrencies

You Might Also Like

Volume of natural gas production
Stock Market
Natural gas and oil production in Brazil rose to record levels
30.10.2020
RUSNANO company
Stock Market
RUSNANO’s subsidiary Atea Pharmaceuticals is listed on the New York Stock Exchange
07.07.2021
law on categorization of investors
Stock Market
Law on categorization of investors: review of changes in the document
18.04.2021
digital currency
Stock Market
China’s digital currency may soon be in full use
05.10.2021
SWIFT international system
Stock Market
SWIFT international system may not be used by Russia, India and China in the near future
10.09.2020
The European Union created a fund
Stock Market
The European Union created a fund of 5 billion euros to help businesses
13.05.2022

Popular Posts

  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Popular Posts

  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics