Alibaba’s 40 price downgrades, US$1.2 trillion tech wipeout show no one knows the bottom as China’s regulatory tentacles snare all

After a 

, no one quite knows where the bottom of the market is when it comes to Chinese technology stocks traded in the US, Hong Kong and mainland China markets. Meanwhile, a lone bear has emerged with a sell rating on Alibaba Group Holding and Tencent Holdings.

 

Analysts from at least 15 brokerages – from UBS Group and Goldman Sachs to Citigroup, Oppenheimer and CLSA – have slashed their price targets for Alibaba by at least 40 times since early November, when Chinese authorities abruptly foiled Ant Group’s blockbuster stock offering and slapped a record US$2.8 billion antitrust fine on the e-commerce giant.

Alibaba’s American depositary shares (ADSs) recently traded at about US$196 in New York, or 15 per cent below their 12-month target of US$230 from the least bullish of 53 analysts with a buy recommendation, according to data compiled by Bloomberg. It is also 28 per cent below the market consensus.

 

CHINA TECH BUBBLE CHASERS LOST USD1.2 MILLIONS (RM5 TRILLIONS)

STILL WANT TO CHASE TECH BUBBLES?

 

CHINA