China Tech Stocks in Freefall: $600B Wiped Out Since October
The Hang Seng Tech Index has cratered 28% as investors flee Chinese megacap tech amid a brutal spending war.
Chinese tech giants are hemorrhaging value at an alarming pace. The Hang Seng Tech Index — home to heavyweights like Tencent and Alibaba — has plunged 28% since October 2025, torching nearly $600 billion in market capitalization.
The selloff shows zero signs of slowing down. Investors are increasingly spooked by runaway spending as China's biggest tech players battle each other in an escalating competition war. The result: a sustained exodus from megacap Chinese tech names.
That $600 billion figure is staggering. For context, it's roughly the GDP of a mid-sized European country — gone in months.
The core concern is straightforward. These companies are burning cash faster than investors are comfortable with, and nobody's convinced the spending spree will translate into returns anytime soon. Until that calculus changes, expect the bleeding to continue.