Chinese hard tech giants see value surge in first half as global investors pour in capital
Under the mainland-Hong Kong Connect programme, northbound holdings rise to record high of 3.13 trillion yuan by end of June
Overseas capital has poured into China’s hard technology champions at an unprecedented pace, driving the market value of their mainland equity holdings to an all-time high by the end of the second quarter.
Despite the long-term influx of foreign capital into the tech sector, Chinese equity markets faced a brutal sell-off on Monday, driven by a broader global tech slump and external geopolitical shocks. A spike in global oil prices revived fears of sticky inflation and sustained high interest rates, triggering a broad retreat from risk assets.
On the mainland, the Shanghai Stock Exchange’s Star 50 Index, which tracks the exchange’s technology board, tumbled 3.42 per cent to close at 1,994.32, breaching the psychological 2,000-point threshold, while the ChiNext 50 gauge of Shenzhen-listed start-ups fell around 3 per cent. The broader CSI 300 Index also suffered, shedding 1.79 per cent.
In Hong Kong, the benchmark Hang Seng Index edged up 0.16 per cent, largely supported by energy stocks tracking firmer crude prices. However, the Hang Seng Tech Index fell by roughly 1 per cent.