MCHI - Dark Clouds Loom Over Chinese Internet Stocks

• FOMC's emerging hawkish stance led to a broad sell-off which also negatively impacted Chinese equities but growth stocks saw renewed favor.
• The KWEB ETF seemed to have taken the brunt of selling by investors fearing a regulatory crackdown on internet companies that has widened in reach and scope.
• The long-held belief that the education sector is a recession-proof and evergreen business is now broken. Edtech stocks like TAL Education plunged, though I see a silver lining.
• The potential listing of Ant Group could provide long-awaited relief for the shareholders of Alibaba Group, with the worst-case scenario averted.
• The partnership with state-media Xinhua leveraging Alibaba's cloud-based AI technology vindicated optimists' view that the internet giant hasn't been unjustly targeted by Beijing.

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