China's '5 Major Big Tech' Lost 57 Trillion Won in Market Cap Last Week

The market capitalization of China's five major big tech companies has evaporated by approximately 57 trillion won in just one week.

According to Bloomberg on the 25th, over the past week, the market capitalization of China's five major big tech companies?Tencent, Alibaba, Baidu, Pinduoduo (PDD Holdings), and JD.com?has decreased by $41 billion (approximately 57.31 trillion won). Analysts attribute the increased selling pressure on these companies to the prolonged economic downturn in China and risks arising from the Donald Trump administration in the United States.

The Hang Seng Tech Index, which tracks the stock prices of major Chinese technology companies listed on the Hong Kong Stock Exchange, also showed weakness.

Bloomberg assessed that the recovery of market confidence in these companies depends entirely on the Chinese government's response. The Chinese government announced a series of measures in September, including real estate tax relief and economic stimulus policies. However, these have yet to produce effects strong enough to boost domestic demand. Some analysts suggest that the sluggish domestic consumption in China has contributed to the weakness of big tech companies.