Just over the past week, the five biggest tech firms erased US$41 billion ($55.05 billion) in market value, while a gauge of sector stocks listed in Hong Kong has fallen into bear market territory. On Friday, a selloff in Chinese stocks deepened as concerns over Donald Trump’s imminent return mingled with growing frustration over the pace of Beijing’s fiscal stimulus rollout. For investors that were looking to major tech earnings to revive market euphoria, this season now looks like a flop.
From 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.
