China Investors Digest Another Letdown From Big Tech Earnings
- Top five stocks erase $41 billion in market value in past week
- Sector no longer driving structural growth, Daiwa’s Choi says
Just over the past week, the five biggest tech firms erased $41 billion in market value, while a gauge of sector stocks listed in Hong Kong has fallen into bear market territory.
Photographer: Qilai Shen/BloombergFrom Tencent Holdings Ltd. to Alibaba Group Holding Ltd., China’s tech leaders delivered underwhelming numbers for a quarter beset by economic and geopolitical uncertainty. Whether or not they can win back investors may increasingly hinge on Beijing’s actions.
In call after call with investors, China’s internet pioneers described how the uneven economy was undermining their business and clouding the future. Most offered cautious optimism for how the unprecedented government stimulus unleashed late in the summer would help grease the wheels and pleaded for patience. But the group that once defied Silicon Valley and defined the country’s private economy was short on new ideas and ambitious goals.