This suggests that the market is still deeply concerned about the growth prospects of China's big internet companies, and is looking for more specific commitments from the government. Coupled with a weakening economy, the campaign has wiped out more than $1 trillion off the market value of Chinese companies. The Hang Seng Tech Index, a key index for Chinese tech firms listed in Hong Kong, dropped as much as 2.3% on Wednesday. The "Chinese government appears to be running out of policy tools to support growth," said Ken Cheung, chief Asian FX strategist at Mizuho Bank. The escalating downside risks for growth might have prompted the leadership to end the tech crackdown quickly, Cheung said.
Source: CNN May 18, 2022 17:52 UTC