The gauge, which marks its one-year anniversary on Tuesday, was up 59% at its February peak but has since seen more than 551 billion in market value wiped out amid Beijing's clampdown on the sector. ; That has reduced the gain to nearly 6%, compared to more than 40% for the MSCI World Information Technology Index and the Nasdaq-100 Index, according to The Japan Times. The measure also lags onshore peers the Chi Next Index is up 35% in the period. The Hang Seng Tech Index has been on a roller-coaster ride in the last 12 months. The underperformance highlights regulatory risks for one of the fastest-growing sectors of China's economy. The ongoing concern that medium-term earnings power may be dented by their data becoming more of a public good, and privacy becoming more of an issue, remains a headwind, said Joshua Crabb, portfolio manager at Robeco Hong Kong Ltd. Beijing's bold moves to rein in the nation's powerful tech firms such as Jack Ma's Ant Group Co. and Didi Global Inc. have sent global investors fleeing on concerns over China's tighter grips on data while relations with Washington remain difficult. (news.financializer.com).
in the news.
Tagged under earnings power, market value topics.