US technology stocks slipped in the correction area. Chinese technology stocks have fallen even more.
An index of the largest technology stocks listed in Hong Kong fell 26% in less than three weeks, reflecting how a sudden turn in the market had a significant loss for investors in popular stocks earlier this year piled up.
The Hang Seng Tech Index – which lists 30 companies, including Chinese internet giant Tencent Holdings Ltd. and Alibaba Group Holding Ltd., and smartphone maker Xiaomi Corp. follows – closed at its lowest level in 2021 on Tuesday and is now in the bear market area, defined as a decline of at least 20% from a recent high.
In comparison, the Nasdaq Composite closed 10.5% lower on Monday than the recent high of the February 12 high.
Money executives say the trigger for the declines in the U.S. and Asian markets was similar: a rapid and unexpected rise in treasury bond yields, which made shares in fast-growing companies less attractive and some investors from technology to banking, energy and others less volatile have volatile stocks. China’s major technology players have taken a bigger hit because a flood of investors from mainland China has sent their share prices and valuations sharply up.