A Year After Xi’s Crackdown, Battered Tech Stocks Still Struggle
- The Hang Seng Tech Index remains stuck in a downtrend
- Regulatory risk not over yet: Foundation Asset Management
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A year after Beijing kicked off a policy clampdown that roiled stock markets from Shanghai to New York, the most beaten-down targets -- China’s technology firms -- are still facing a rocky outlook.
The Hang Seng Tech Index, which tracks the nation’s biggest technology companies, has failed to break out of the tight trading range it has been in since July, following a 46% plunge. The cost of bearish options that profit from further losses in the index still far outstrips that of bullish ones, according to data compiled by Bloomberg.