Even After $1.5 Trillion Rout, China Tech Traders See More Pain
- Fund managers bearish over industry outlook due to policy woes
- Hang Seng Tech Index has lost more than 40% since Feb. peak
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Even a $1.5 trillion selloff may not provide an attractive entry point for equity investors as they grapple with cascading risks in China’s technology sector.
A stock rout triggered by Beijing’s widening clampdown has left Tencent Holdings Ltd. trading at a price-to-book ratio lower than during the 2008 financial crisis. Alibaba Group Holding Ltd. has slumped to record low in Hong Kong, where the benchmark stock index fell into a bear market this week. Despite such rapidly diminishing valuations, the pace of fund outflows suggest few buy signals are flashing.