(Feb 3): A gauge of Chinese technology shares extended its drop from an October high to 20%, following a sudden selloff on Tuesday (Feb 3).
The Hang Seng Tech Index fell as much as 3.4%, reversing an earlier gain, led by losses in Kuaishou Technology, Tencent Holdings Ltd and Alibaba Group Holding Ltd. Tuesday’s drop came as investors grew worried about the possibility of the government hiking value-added tax for internet services firms after levying telecommunication companies.
The decline followed the latest choppiness on Wall Street as doubts resurfaced about major artificial intelligence firms’ ability to justify their lofty valuations and ambitious spending. Investor mood has also soured in recent weeks toward Chinese stocks in general, given new signs of economic weakness and a lack of stronger growth stimulus.
Uploaded by Arion Yeow
