China’s major technology stocks, including Baidu, faced a selloff. Investor concerns over rising costs and intense artificial intelligence competition drove the decline.
The Hang Seng Tech Index lost nearly US$600 billion in market value since its October peak. This downturn reflects anxiety regarding financial returns on heavy AI investments.
Baidu, ByteDance, and Alibaba spent heavily on subsidies to attract users during the Lunar New Year. Market worries center on low-return investments and eroding profit margins as companies compete for AI dominance.