Another Chinese Tech Wipeout Underscores Hidden Risk

Hong Kong's inauspicious start to the new year continued Wednesday, as tech shares were bludgeoned in the worst rout since last summer. The perpetually beleaguered Hang Seng Tech index dropped almost 5% (figure below), an egregious slide that laid bare an underappreciated vulnerability -- namely, overlapping ownership and the possibility of declines associated with divestments. Needless to say, Beijing's ongoing anti-monopoly crackdown raises the odds of such divestments. The locus of concern