Here are two words for investors rushing to exit Chinese tech shares and those tempted to buy: Joe Biden.
Granted, this week’s chaotic selloff bears Beijing’s fingerprints. The government’s sudden attempt to rein in its most powerful private-sector companies helped wipe out $290 billion of market value in tech giants Alibaba Group Holdings, Tencent Holdings and others in just a couple of days.
The regulatory clampdown, one punters fear will widen, is roughing up shares of internet-sector leaders including JD.com, Meituan and Xiaomi Corp – basically, every homegrown champion investors thought would pave the way for Chinese tech dominance by 2025 and beyond. Including, of course, the suspension of Ant Group’s $35 billion initial public offering.
Yet might Biden’s victory over Donald Trump in the November 3 US presidential election also be a factor? The idea being that Biden is less interested in a dual-track technological future – one built around Washington’s and the other around Beijing.