Slowdown in Chinese Tech Stocks Shows Beijing’s Fear of Bubbles
- ChiNext rally culled after more than 60% surge this year
- Record momentum, surging turnover driving tech stock gains
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Last week China targeted large caps in Shanghai, now it’s letting some air out of high-flying tech startups in Shenzhen.
The ChiNext gauge fell 1.6% at the close on Wednesday. Declines were triggered on Tuesday after some government-backed funds sold stakes or outlined plans to do so, sending turnover to a record 135 billion yuan ($19 billion). The drop followed a rally that had sent the tech-heavy gauge up more than 60% this year.