The quartet of Chinese technology flew $ 60 billion in capitalization

China’s four “tech giants”, including Alibaba, Baidu,, and Netease, have fallen more than $ 60 billion in market capitalization in just three trading days.

Alibaba’s capitalization dropped the most among the Chinese tech quartet with a drop of up to $ 39 billion.

Shares of the above 4 technology companies fell sharply when faced with the risk of being delisted on the US stock exchanges. Data compiled by CNBC TV channel from Refinitiv Eikon shows that by the end of the March 26 trading day in Hong Kong, the market capitalization of these 4 stocks has lost 468.64 billion Hong Kong dollars (equivalent to equivalent to about 60.31 billion USD) in the last 3 trading days. In particular, Alibaba’s capitalization fell the most with 303.1 billion Hong Kong dollars (39 billion USD), followed by Baidu (107.54 billion Hong Kong dollars), (30,674 billion USD). Hong Kong), and Netease (HK $ 27,334 billion).

All 4 “giants” Chinese technology are listed in the US market and also listed secondary in Hong Kong. In particular, the search giant Baidu, which is considered the “Google of China”, has just completed a very lackluster listing earlier this week in Hong Kong. Baidu shares on March 23 closed at the initial offer price in Hong Kong.

The US Securities and Exchange Commission (SEC) on March 24 passed a law that threatens to oust US businesses that do not meet the standards of auditing from the stock exchanges in this country.

It is known that the Foreign Companies’ Accountability Act has been passed by the administration of former President Donald Trump. Companies in the sights of the US Securities and Exchange Commission will have to perform audits under U.S. oversight and need to prove that they are not owned or controlled by a governmental entity. foreign jurisdiction. The US Securities and Exchange Commission also requires cListed companies must list any board members who are Communist Party officials.

In addition to legal changes in the US, Chinese technology companies are also facing a potential challenge at home as Beijing tightens its controls on the rapidly growing technology sector, at the same time. establishing antitrust laws in the fintech and e-commerce sectors.

Earlier this week, Reuters reported that the founder of Tencent Technology Group met with Chinese antitrust officials in March to discuss regulatory compliance at the conglomerate.

After Beijing’s “manipulation” last year, Ant Group’s initial public offering (IPO) – the world’s most anticipated IPO – was suddenly delayed. a few days before launch. Ant Group do the founder of Alibaba Group, billionaire executive Jack Ma.

Besides, Chinese as well as global technology enterprises are facing great pressure when US Treasury bond yields are still going up and technology stocks sell-off has not stopped. Rising bond yields have scorched the recent stock market gains, especially technology stocks.

Moreover, as the outlook for a global economic recovery after the pandemic is more optimistic, investors are also gradually stepping their portfolios from technology to other sectors such as stocks – an asset class that is expected to increase. growth when the economy recovers.