Tech Leads Slump in Chinese Stocks on Earnings, Trump Risks

Published On Nov 14, 2024, 3:34 AM

Chinese tech stocks have seen a significant decline, approximately 20% since their peak in October, largely driven by concerns regarding geopolitical tensions, particularly with the anticipated policies of US President-elect Donald Trump. The Hang Seng Tech Index fell by 3.2%, with major companies like JD.com and Xiaomi contributing to this decline. Investors are cautious ahead of upcoming earnings reports from key firms such as JD.com and Alibaba, aware that these results will provide insight into the health of Chinese consumer spending. Despite a strong earnings report from Tencent, investor sentiment remains shaky, influenced by fears of escalating US-China tensions and profit-taking after a preceding rally triggered by monetary stimulus in China.

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Stock Forecasts

KWEBView KWEB chart on TradingView

Negative

The decline in tech stocks may provide a buying opportunity if investors can navigate the upcoming earnings reports and geopolitical landscape. However, caution is advised as continued sentiment shifts could lead to further declines.

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