Chinese Tech Stocks Crash: VAT Fears Trigger Biggest Fall of the Year

• Chinese tech stocks are nearing a bear market, down almost 20% from October highs.
• Investor concerns over potential Value Added Tax (VAT) increases on internet service providers are the primary driver of the sell-off.
• The Hang Seng Tech Index experienced a sharp 3.4% intraday fall on Tuesday, February 3, reversing early gains.
• Major companies like Kuaishou Technology, Tencent Holdings Ltd, and Alibaba Group Holding Ltd were significantly impacted.
• Global market volatility and weak Chinese economic indicators are also contributing to the decline.

Why It Matters: Fears of increased VAT on internet services and broader economic concerns are crushing Chinese tech stocks.