With China’s big anti-monopoly, the value of technology stocks shrink, not only retail investors lose their hands, even large foreign funds also speculate in the case, and do not ignore its ripple effect, the chain of funds break at any Time to trigger a new “Lehman-style plunge” storm!
U.S. stocks last week a rare huge amount of selling, which involves many Chinese technology stocks, rumors are that there are large fund holdings because they were chasing margin and were chopped off, but also a number of international investment banks involved, suffering sky-high losses, it is clear that China’s technology assets “lightning” will not only affect the Hong Kong stock market, but also the output risk, and The “fire” of Wall Street, disguised as one of the battles of the financial war between China and the United States. In the face of a complex and volatile international stalemate, investors should really be cautious above all else.
Since Alibaba’s Ant Group’s listing in China and Hong Kong was halted last November, it has become clear that Chinese Communist authorities are targeting fintechs and imposing tough regulations. It’s true that Ant’s IPO has been in the works for years, and it had to get the green light from several government departments before the listing would be approved.
In the past 10 years, Ali and Tencent, the two technology giants, have grown to their present size under the shade of state policy. The need to make changes now is because the authorities are aware that large private enterprises have grown to “too big to fail” and, more importantly, in the face of the U.S. technology siege, China needs to strengthen its control over the development of strategic industries in science and technology. In order to take the lead in artificial intelligence and big data applications. The U.S. industry also admits that China’s system is conducive to the development of innovation and technology, and is catching up fast. Because of this, earlier flocked to the south to speculate in Hong Kong technology stocks, the “northern water” suddenly dissipated, many giant companies share prices such as diarrhea, high leverage to sit on the heavy goods of foreign funds are avoiding the big investors.
Last week, Wall Street staged a $ 20 billion stock washout, rumors are that the main protagonist is a Family office holdings were forced to close out, holding the shares of Chinese technology stocks plunged, along with a number of U.S. technology network and biotechnology stocks valuation also suffered. Seeing that even the fund’s major investors were also “cut off”, the whole Wall Street shuddered! In fact, the current situation of U.S. stocks and the 2008 Lehman crisis before the outbreak of similar, the initial market does not feel the end is near, and even happy to see a short-term rebound, but then ushered in the “fall to you do not believe” the big plunge! When the purchasing power generated by the $1.9 trillion stimulus package handed out by the Biden administration is absorbed, perhaps U.S. stocks will not be too far away from the “ultimate fall”.
The facts are in front of us, China’s technology stocks washout wave is going to hurt the U.S. technology capital and even international banks, if the incident continues to ferment, the fund bucket quickly sell goods, will accelerate the bursting of the U.S. stock bubble. The surface of the usual stock market adjustment, behind the hidden financial rivalry between the United States and China, investors who do not want to suffer from the fish in the pool, we have to control the betting code, reduce the leverage operation, so as not to become the two strong fight “cannon fodder”!
Recent Comments