The China Tech Bubble Is Dead.

Nvidia DE2019
Mar 23 24 Comments

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

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TOP 24 Comments
  • Expedia / Eng hnAy18
    Yet Alibaba dreams of lasting for 100 years
    Mar 23 3
    • Microsoft ToteMaGoat
      And I think they will last a 100 years.
      Mar 23
    • Snapchat gqkO66
      Claiming you will last for X duration is classic Chinese rhetoric to display status, and is not meant to be taken seriously
      Mar 23
    • Microsoft ToteMaGoat
      Yes, but read about the culture of the company and their corporate values. Jack Ma is an amazing thought leader.

      It may not end up lasting 100 years but of all the Chinese companies, I’d wager that Alibaba has the best shot.
      Mar 24
  • Nvidia DE2019
    OP
    At least the good thing is people buying home with cash is gone down . It used to be 20% and all are from China .
    Mar 23 3
    • Sina.com / Eng
      WLB

      Sina.com Eng

      PRE
      Facebook, Apple, Amazon, Netflix, Google
      BIO
      Software Engineer and former phd candidate in biophysics
      WLBmore
      nope, chinese cash buyers loves la much more than sf. and they are still around.
      Mar 23
    • Amazon LS2044
      ^this
      Mar 23
    • Nvidia DE2019
      OP
      😂
      Mar 23
  • Microsoft ToteMaGoat
    Wait till the housing market comes down crashing. That’s the ultimate domino for Chinese economy.
    Mar 23 13
    • Amazon cLdC56
      OMG hello phoBowl, the brainwashee! “Hallstatt in Guangdong” is typical silly Western style news about China. And it’s laughable to worry no population move in for Guangdong with 100 million people. The very recent news about Guangdong is the Hong-Kong-Macau-Zhuhai bridge construction completion which glues the Cantonese Bay région forming a unbelievable mega city with ~60million people. Obviously your government and media won’t let you know this.
      Mar 27
    • Sina.com / Eng
      WLB

      Sina.com Eng

      PRE
      Facebook, Apple, Amazon, Netflix, Google
      BIO
      Software Engineer and former phd candidate in biophysics
      WLBmore
      china has it own problem, but not ghost city. the over population is more urgent there.
      Mar 27
    • Microsoft PhòBowl
      CLdC56, “my govt” is not my source nor is western media. In fact I don’t have a TV or watch it.

      I’ve lived in China (Shenzhen and Suzhou) and my wife was born and raised in China.

      It comes down how Chinese citizens invest. The stock markets are quite unreliable so most Chinese citizens invest in real estate. Sometimes multiple family members combine funds to buy an apartment just to leave it unoccupied because it’s an investment that’s appreciating in value.

      Everything well and good so far. Except, like all investments, things go up and down. But the Chinese govt intervenes every time housing prices show any signs of correction. And we all known how interventions and artificial price propping ends up.

      Also, in cities like Hong Kong the prices are completely manipulated by the nexus between builders and the local govt officials. It’s the only part of HK that’s heavily corrupt.

      I could go on and on but you get the idea.
      Mar 27
    • Expedia / Eng hnAy18
      @pho, Zhongguo bu hao...
      Mar 27
    • Microsoft PhòBowl
      @hnAy18. No. China very good. People very nice. Govt officials and bureaucrats bu hao.
      Mar 27
  • Samsung setygh
    Any implications on us market?
    Mar 23 1
    • Sina.com / Eng
      WLB

      Sina.com Eng

      PRE
      Facebook, Apple, Amazon, Netflix, Google
      BIO
      Software Engineer and former phd candidate in biophysics
      WLBmore
      not at all, thus nobody care
      Mar 23

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