Alibaba, Baidu Estimates Slashed on Covid Lockdowns
- Analysts cut Hang Seng Tech profit estimates by 4% in April
- Sector’s earnings directly linked to Covid policies: Invesco
A volunteer in personal protective equipment delivers food packages during a lockdown in Shanghai, China, on April 28.
Source: Bloomberg
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China’s technology giants have had their earnings estimates slashed for a second straight month amid the nation’s relentless pursuit of its Covid-Zero strategy.
Analysts have trimmed profit projections for Hang Seng Tech Index members by 4% in April, following a similar reduction in March, according to data compiled by Bloomberg. Among their reasons is the prospect for further Covid flareups in the world’s most populous nation.