So now we can only wait for the Chinese government to take control.
Over the next two weeks, capital markets in China and around the world were in turmoil.
Not only does the Chinese government hold shares in many listed companies, but many listed companies in the A-share market are also state-owned enterprises or central enterprises.
China will also need to take a coordinated approach to dealing with these companies.
In particular, the market capitalization of companies like Zhonggai Internet in Hong Kong has plummeted, leading to questions about when the bottom will be reached.
By 2031, some inferior internet companies listed on the Hong Kong Stock Exchange will have been eliminated and delisted, leaving only high-quality internet companies.
These companies have experienced a repeat of the sharp declines seen in 2021 and 2022, reclaiming their former glory as beggars.
"Chinese concept stocks in the Internet sector have fallen into a state of mutual pity, with the CSI Overseas Internet 50 Index experiencing a continuous sharp decline since the 13th of this month."
The index has fallen by more than 30 percent, with Tencent's stock price, which is hailed as a ballast for overseas Chinese concept stocks, falling by 25 percent.
This is highly unusual for a leading company in the internet industry, spanning the PC era, the mobile internet era, and the VR era.
Even in the VR era, with the entry of well-known domestic and foreign companies such as Microsoft, Facebook, Google, and Ali into the virtual city field, Tencent's Huanyu Pengcheng was dethroned from its position as the number one in market share for the first time.
However, this is still not the reason why Tencent's stock price dropped by 25% in a week.
However, this decline was a general drop in overseas-listed Chinese stocks, not just a problem for Tencent.
Affected by the sharp decline in Chinese concept stocks, the Nasdaq index in the United States fell by more than 10% in a week, with Apple, Meta, Microsoft and Google bearing the brunt of the decline.
From a news perspective, there are currently no negative reports about China and America. Senior industry insiders in China speculate that this may be a risk-averse behavior by capital as annual reports are about to be released in quick succession.
Duan Yongping, a prominent investor who had long been bullish on Tencent, has disappeared from Xueqiu (a Chinese investment platform) and has not posted any comments expressing his optimism about Tencent.
He had previously expressed his optimism about Tencent in the fourth quarter of last year and had increased his holdings by 3 million US dollars in the same quarter.
Based on Tencent's stock price drop this week, Duan Yongping would have suffered a paper loss of over 600,000 US dollars just from this additional investment operation if he hadn't sold his shares.
Judging from the sudden, all-encompassing, 360-degree plunge in the overall Chinese internet sector, industry insiders in Hong Kong believe that the Chinese government is about to introduce relevant policies, making this a purely policy-driven impact.
---Aside---
Let's cast our votes at the end of the month!
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