Comment by SilverBirch

I'm not an expert on this, but from what I gather this all leads back to a power struggle between Jack Ma and Xi Jinping. Ma was ready to go public with AliPay and in the build up to it made a speech that criticised the government regulation as being out of date. This was viewed as a challenge to the governments power. Over the next few months the government moved to tighten regulations on companies like AliPay and disappeared Jack Ma. The government since then has basically completely taken over his entire empire, and sliced it up into pieces. This is basically Xi sending the message that private business in China will always defer to the government. All of this has natural absolutely tanked the value of China's tech sector. So people are hoping that now the worst of it is done and they no longer have enormous tech giants, but a series of smaller companies, that the government will return to being more hands off and in turn those smaller companies can return to more natural valuations.