(Bloomberg) — Chinese tech stocks are nearing a fresh low against their U.S. peers, as a global selloff added pressure to a sector still reeling from Beijing’s regulatory clampdown.
A ratio between the Hang Seng Tech Index, which was launched in July last year, and the Nasdaq 100 Index now stands at 0.41, almost halved from a February peak and just a whisker away from August’s record low.
The relative weakness of Chinese tech shares shows the heavy blow from Beijing’s regulatory assault on private enterprise, even as their U.S. counterparts have tumbled on the threat of rising inflation. Worries about contagion risk from property giant China Evergrande Group’s debt crisis have added to the rout.
The Hang Seng Tech Index dropped as much as 2.5% earlier Tuesday, looking poised to reach a fresh low, before narrowing the losses to about 0.2% in afternoon trade. The Nasdaq 100 has lost about 8% from an all-time high reached last month.
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