Beijing –
Chinese President, Xi Jinping, more and more powerful in China. However, this had a negative impact on the tech sector, where the stocks technology company the country fell in unison.
As mentioned detikINET from CNBC, Alibaba and Tencent shares fell about 11% in Asia. So the shares of the search engine Baidu fell 12% and the food delivery company Meituan fell more than 14%.
This happened after Xi Jinping came to power for a third term and filled the Politburo Steering Committee with loyalists. The committee has great power in the policies of the Chinese government.
Politics Xi Jinping It is also expected to be smoother, even if wrong or incorrect, and may further suppress the growth of the technology sector. Even now, tech companies, including their leaders like Jack Ma, have been hampered by various kinds of pressure.
“Today when the Politburo steering committee is full of Xi’s choice, it becomes clear that no other political elite dares to challenge Xi’s political mistakes,” said Xi Sun, senior lecturer at King’s College London.
“So, as a result, its policies are unlikely to be reversed or corrected, leading to a very bleak economic outlook,” he added.
Reflecting on policies such as zero covid, for example, has in fact caused the Chinese economy to experience great difficulties. No wonder the tech giant’s billion-dollar valuation has been reduced. Tencent and Alibaba also experienced the biggest growth slowdown in their history for 2022.
“Tech stocks are never good friends Xi Jinping and it is clear that the market thinks it will continue, “said Justin Tang, head of Asian research at United First Partners.
Watch videos”Xi Jinping will be China’s third term as president“
[Gambas:Video 20detik]
(fyk / fyk)
