Chinese tech-stock rebound meets extended cutbacks in price targets as MSCI index loses US$2.3 trillion of value this year
- Analysts have continued to trim the upside potential of top tech stocks after the latest round of earnings reports
- The MSCI China Index has corrected by 20 per cent this year, leaving investors US$2.3 trillion poorer

Analysts have trimmed the 12-month targets for the top 10 Hang Seng Tech Index heavyweights by 8.5 per cent on average since May 1 as the earnings season unfolded, according to Bloomberg data. That follows a 15 per cent cut in the first quarter this year.
They dialled back Alibaba Group Holding’s potential price upside by 4.8 per cent to HK$150.02 and Tencent Holdings’ potential by 8.7 per cent to HK$469.01 in the past one month. JD.com’s target was lowered by 3.6 per cent to HK$336.38.
The adjustments reflect a market suffering from weakening corporate earnings outlook as China trades growth for a zero-Covid policy to combat the Omicron wave. That no-nonsense approach has led to partial or total lockdown in 40 mainland cities including Shanghai and Shenzhen, slamming output and employment.
“Strict Covid-19 restrictions are pushing earnings recovery further out into the second half and 2023, especially for consumption-related businesses like digital advertising and e-commerce,” said Vey-Sern Ling, senior Asia tech equity adviser at Union Bancaire Privee. “The situation can improve if the government announces strong stimulus measures.”
