Chinese tech stocks, such as Alibaba, Tencent and Baidu are suffering a lot today. The shares had to accept a setback of over 10% today. The reason for this is Xi Jinping.
Tech stocks in China fall sharply due to Xi Jinping's 3rd term; Image: Tagesschau
The tech sector and all other sectors are currently suffering on the stock market. The reason for this is the 3rd term of Xi Jinping. He has already introduced strict laws for the tech giants in recent years.
Many investors are afraid that Jinping's power will have further repercussions for businesses, as he has a negative attitude toward companies, even more so toward the big ones.
Another reason for the sharp drop is that China is pursuing a strict "zero-covid" strategy. This has even caught China's largest city, Shanghai, and it has been fully shut down. This strategy is bad for companies, as there will be a shortage of labor and demand will also plummet. Investors are therefore also afraid that something like this would happen again under Xi Jinping.
