China Tech Stocks Trail Global Peers, With Hang Seng TECH Down Nearly 40%

3 articles · Updated · CNA · Jun 2

Nearly 40% has been wiped from the Hang Seng TECH index over five years, while China’s broader CSI 300 remains about 15% below its February 2021 peak.
Policy choices drove much of the slide: Beijing’s crackdown on consumer tech, a push toward “hard tech,” and tighter property controls hurt investor confidence, household wealth and spending.
US$1 trillion in unauthorized money left China last year, and April retail sales rose just 0.2% from a year earlier, underscoring weak domestic demand despite official calls to boost consumption.
Overcapacity in sectors from property and steel to EVs and solar has triggered price wars, bankruptcies and deflationary pressure, with more than 40 Chinese solar firms failing, merging or delisting since 2024.
The weakness suggests China’s state-led drive to expand supply and strategic industries has not translated into stronger productivity or enough consumer demand to absorb what the economy produces.