Is a rebound for Hang Seng Tech Index in sight?
Add BT as a preferred sourceTHE Hang Seng Tech Index, which tracks the 30 largest technology companies listed in Hong Kong, has underperformed for the year. Its year-to-date performance saw a decline of 24.34 per cent compared to Nasdaq's increase of 23.68 per cent as at Nov 4, 2021.
The poor performance for the year can be attributed to various factors. A key reason which led to the correction of the index was China's regulatory crackdown across various sectors and industries. Technology companies in China suffered with the introduction of anti-monopolistic regulations, with the impact particularly felt by the mega-cap technology companies which were previously seen as the role models for many technology firms in China.
Other factors that caused the volatility in the second half of the year could be: rising trade tensions with the United States; supply chain disruptions; energy shortages in China; and the escalating Covid-19 situation in China and Hong Kong.
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