Bloomberg: Market worries that Chinese tech stocks may face increased value-added tax, Hang Seng TECH Index falls to the brink of a bear market

The Hang Seng Index today (3rd) fell by as much as 343 points, reaching a low of 26,431 points, dragged down by technology stocks. According to Bloomberg, the market is increasingly worried that after the Chinese government raised the value-added tax on telecommunications companies, the next target will be to impose higher value-added taxes on internet companies, leading to a sudden sell-off of Chinese tech stocks and pushing the Hang Seng Tech Index to the brink of a bear market.

The report also stated that recent fluctuations in the U.S. stock market have exacerbated the decline in stock prices, as the market questions the high valuations of the tech industry once again. Meanwhile, Tencent (00700.HK) has followed other tech giants by issuing electronic red envelopes to attract users to use its AI Yuanbao, raising concerns about an intense price war among Chinese tech giants.

Tencent once fell by 6.3%, reaching a low of 561 HKD, and is currently reported at 578.5 HKD, down 3.34%. Alibaba (09988.HK) fell nearly 5% at most, currently reported at 160 HKD, down 2.02%. Kuaishou (01024.HK) once dropped 7.7%, currently reported at 73.2 HKD, down 4.94%.

The report quoted Wang Ran, Investment Director of Nomura International Wealth Management for North Asia, stating that the Hang Seng Tech Index has performed poorly since December last year, and today's weak market opening may reflect that investors are turning their attention to other stocks for bargain hunting, as well as concerns about changes in tax policies. The index appears slightly oversold relative to fundamentals, and with Chinese tech companies announcing quarterly results in mid-February and the central policy meeting in March, a rebound in tech stocks cannot be ruled out