Beijing: After a historic antitrust crackdown on China s biggest tech companies last week, investors are betting there is more pain ahead.
GAM Investments, BNP Paribas Asset Management and JP Morgan Asset Management Inc. see more regulatory tightening in China s clampdown on monopolistic practices, putting pressure on the country s leading internet stocks over the next few months. The Hang Seng Tech Index, where many Chinese tech giants are listed, has already lost about a quarter of its value from a rout that began mid-February.
The shockwaves from Beijing s bid to quell abuses of information and market dominance among industry leaders have left global investors pondering the prospects of China s internet firms. The antitrust crackdown has exacerbated a global tech selloff sparked by rising bond yields, as traders forecast tighter liquidity conditions at home and abroad and lower company valuations.