Chen Zhiwu, a chair professor of finance at the University of Hong Kong, said headwinds such as risks of a global recession and US-China tensions would continue to exert “extraordinary pressures” on China’s hi-tech push. “The US tech war has largely thwarted Chinese tech companies’ [initial public offering] opportunities. Even if these tech manufacturers succeed in going public, the potential sanctions would affect their market valuations,” said Chen. He added China’s weak economic momentum is also weighing on the market’s overall willingness to invest, with hi-tech manufacturing just one element. “The rapid development of hi-tech industries over the past 20 years has provided China with a massive boost to its economic boom, this was partly due to the impact of a stable external environment on investor confidence,” Chen said.
17 Jan 2024
金融学