Internet stocks are experiencing the strongest sell-off in the year.
On Thursday local time, following the sharp decline of Hong Kong stocks, European and US stocks also fell one after another. The three major European stock indexes once fell more than 2%. By the end of the day, Germany’s DAX30 index was down 1.73%, Britain’s FTSE 100 index was down 1.68%, and France’s CAC40 index was down 2.01%.
In terms of US stocks, the VIX panic index of US stocks once pulled 26%, US stocks opened sharply lower, the Dow and S & P 500 index once fell by more than 1.5%, and the NASDAQ index once fell by 2%. Then the decline narrowed, with the Dow down 0.75%, the NASDAQ down 0.72% and the S & P 500 down 0.86%. Popular stocks in general fell, New Oriental fell nearly 10%, Tencent music fell more than 8%, Didi fell nearly 6%, Alibaba fell nearly 4%.
At the same time, the Internet theme funds, which enjoyed unlimited popularity at the beginning of the year, are also experiencing a significant withdrawal of their net worth, and the net worth of some related funds has been withdrawn by more than 30% compared with the high level in the year.
01 Internet stocks are experiencing the strongest sell-off in the year
On July 8, Hong Kong stocks fell sharply, and the Hang Seng Index fell unilaterally, closing down 2.89% to 27153.13. The Hang Seng technology index plummeted 3.71%, the biggest one-day drop in the last four months. The index also hit 7301.85 points in the day, a new low in the last 10 months.
It is worth noting that, in addition to some manufacturing technology companies, the constituent stocks of Hang Seng technology index are mainly Internet companies. The sharp decline in the share prices of these Internet companies has become the main factor for the decline of Hang Seng technology index.
The recent decline of some large Internet companies listed in Hong Kong has intensified.
The stock price of Tencent holdings, the Internet leader, fell in eight trading days in the last nine trading days. On the 8th, the share price once hit HK $523.50, a new low this year. Tencent Holdings has dropped more than 30% from its high in February this year.
Alibaba’s Hong Kong stock, another Internet leader, has fallen by more than 10% since July. Recently, it fell below HK $200, setting a new low for the past year.
Meituan, with a market value of more than one trillion Hong Kong dollars, recently started a new round of decline, with a decline of 16.48% since July.
Statistics show that in the Hang Seng Index, the Internet stocks account for a large proportion of the stocks in the top of the year’s high retracement rate, and the general withdrawal rate is over 30%, of which the fastest withdrawal rate of the Kwai Chung is over 60%.
In contrast, among the constituent stocks of the Hang Seng technology index, the withdrawal rate of the stocks that prefer technology manufacturing is generally very small. For example, SunYu optical technology has recently set a new record.