about 2 years ago • 1 min
After a terrible year in 2021, 2022 is – so far – working out much better for the biggest Chinese tech stocks.
The lower panel in the chart above shows how China’s Alibaba and Baidu ended deep in the red last year, while every other member of the NYSE FANG+ Index climbed. The upper panel shows how the situation has reversed in 2022, with those two Chinese stocks gaining and the eight US companies dropping.
Alibaba, an ecommerce giant, and Baidu, operator of China’s most popular search engine, led a sell-off in Chinese stocks last year as the government cracked down on sectors from consumer-facing tech to private tutoring.
This year it’s been US tech stocks’ time to suffer, as investors pivoted away from highly valued companies reliant on the promise of future profits in anticipation of rising central bank interest rates. Meta and Netflix have been particular losers as their user numbers faltered.
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.