China's Tech Stocks Plummet

 As Chinese companies give quarterly reports, a startling 0 growth result has popped up. Most of the tech giants such as Tencent and Alibaba have seen a major plummet in their earnings and investor charts. The value of venture deals has fallen by 44%. Beijing officials are failing to meet their own GDP target this year.

There have been a few Chinese companies such as iQiyi Inc. which performed very well, but their growth was shadowed by a big downfall.

Causes: The Chinese policy of total restrictions during the recent covid wave is to blame according to various sources such as Bloomberg. Also, the internet crackdown by the ruling communist party has led to a significant decrease in logistics across the country.

Effects: They include a severe loss in the investors in the Chinese stocks. The recent Asian stocks rallying could mean nothing if these results affect the coming weeks. The startups are expected to reduce severely due to the loss of foreign institutional investors. For the first time, the American Economy could outpace the Chinese.

What this means for you: Expect the Chinese Yuan to fall with respect to other currencies. There will be a fall in the Asian stocks. The loss of tech from China could aggravate the already occurring inflation across the world.

Support Links:

China's GDP estimate

Loss of Investors

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