Published on 13 Jul 2021 on Bloomberg via Yahoo Finance
China Tech’s Stock Pain Shown in Widening Gap With U.S. Giants
(Bloomberg) -- The gap between megacap technology stocks in China and the U.S. is at its widest in at least five years, as Beijing tightens its grip on some of the nation’s biggest companies.
An equal-weighted basket of China’s three internet giants collectively dubbed BAT-- Baidu Inc., Alibaba Group Holding Ltd. and Tencent Holdings Ltd. -- fell about 2% in the 12-months through Friday, according to calculations by Bloomberg. In contrast, an equivalent portfolio of their U.S. peers -- Facebook Inc., Amazon.com Inc., Apple Inc., Microsoft Corp. and Google’s parent Alphabet Inc. (FAAMG) -- surged 40%, resulting in a 42-percentage-point gap between the two groups.
Chinese technology shares just suffered from their worst week in more than four months, after the nation’s cyberspace regulator ordered app stores to remove Didi Chuxing and issued a sweeping warning to the nation’s biggest companies, vowing to tighten oversight of data security and overseas listings. Beijing has also proposed rules that would require nearly all companies seeking to list in foreign countries to undergo a cybersecurity review.