After A Dismal 2021, China’s Tech Giants Are Beating Their US Rivals In 2022

After A Dismal 2021, China’s Tech Giants Are Beating Their US Rivals In 2022
Andrew Rummer

about 2 years ago1 min

Mentioned in story

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. 

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