The China Tech Bubble Is Dead.
A hefty 62 percent of private equity-owned Chinese internet and software companies that went public in 2017 and 2018 lost more than 30 percent of their market value in the first 12 months after listing. That compares to an average increase of 105 percent for companies that listed in 2015 and 2016. The honeymoon was bound to end, because the mountain of Chinese cash seeking returns has been shrinking. Yuan-denominated fundraising fell for the first time in eight years in 2018. Money from peer-to-peer lenders dried up amid Beijing’s crackdown on the sector, while China’s decision to put brakes on domestic IPOs to support the stock market blocked the exit door for potential investors. https://www.bloombergquint.com/opinion/the-china-tech-bubble-is-dead-long-live-the-china-tech-bubble#gs.2qcto8
Any implications on us market?
not at all, thus nobody care
At least the good thing is people buying home with cash is gone down . It used to be 20% and all are from China .
Wait till the housing market comes down crashing. That’s the ultimate domino for Chinese economy.
Oh my god. I would love to watch that with popcorn
In 2014 the govt intervened and artificially propped up the stock and housing market. We all know how it ends when something is artificially held up. Corrections are healthy and like a force of nature. You cannot take on it.
Yet Alibaba dreams of lasting for 100 years
And I think they will last a 100 years.
Claiming you will last for X duration is classic Chinese rhetoric to display status, and is not meant to be taken seriously