Following a decline of more than one trillion dollars, many investors believe that the three major technology stocks in China have reached their lowest point. Skeptics, on the other hand, assert that the industry’s most pressing issues have not been adequately addressed.
The aggregate market capitalization of Alibaba Group Holding, Tencent Holdings, and Meituan reached its all-time high in February of last year. Since that time, all three companies have experienced a decline in value that exceeds $1.2 trillion. This was a small portion of a much larger sell-off in Chinese technology equities. Shares have been driven lower due to multiple factors, including China’s ultra-strict “zero Covid” policy, a recession in the domestic economy, and a crackdown on the sector by the Chinese government.