The investment logic in the mainland technology sector has undergone a fundamental shift, which is expected to have an impact on the market. The central government ordered the cancellation of a $2bn deal for Meta to buy Chinese AI start-up Manus, and told many AI companies including Moonshot AI and Stepfun that they are not allowed to accept US capital; and TikTok's parent company, Byte Dance， is not allowed to sell second-hand shares to US investors without government approval. There are signs that the US venture capital (primarily from pension funds and university endowments) which used to be actively involved in financing China's technology industry will be subject to more severe restrictions. The uncertainty over approval of tech companies moving from market-driven to government approvals is likely to deter some of the funds.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
