China’s once-popular technology companies are losing their shine, with their share prices plunging over the last few months, as investors grew nervous of government clampdowns in the sector.
The combined market capitalization of 10 leading IT and high tech companies, including Alibaba Group Holding and Tencent Holdings, has plunged by over $800 billion or almost 30% from a peak in February. The Science and Technology Innovation Board, better know as the STAR board and home to some of the most prominent tech companies in China, is now hovering in a low range.