Hong Kong has borne the brunt of the recent volatility in technology share prices because the local market is more speculative than US bourses, according to analysts.
'Many local tech stocks are only name-changing plays and lack concrete business models,' Tung Tai Securities associate director Kenny Tang Sing-hang said. 'As a result, they are more vulnerable than their Nasdaq counterparts.' The technology-heavy Growth Enterprise Market ended the week on Thursday at 604.81 points, down 40.8 per cent from its 1,021.74-point all-time high last month.
Technology indices at Tanrich Securities and Dao Heng Securities have also plummeted.
The Tanrich Technology Index has fallen 43.05 per cent from its high last month, while the Dao Heng Securities Technology Index has dropped 34.71 per cent.
The hit taken by the local technology market in this period makes losses on the Nasdaq stock market in the US appear mild.
On Thursday, the Nasdaq Composite Index finished the week at 3,643.88 points, down 27.84 per cent from its record high of 5,048.62 points on March 10.
