Slowdown fears grip China tech despite upbeat sales

Slowdown fears are weighing on Chinese tech stocks and even upbeat sales figures from the industry’s bellwethers can’t revive them.

Shares of Tencent Holdings Ltd. have fallen more than 2.5% in Hong Kong since China’s most valuable company announced its fastest revenue growth in more than a year on Wednesday. Similarly, the nation’s Internet search leader Baidu Inc. has declined over 2% following a stronger-than-expected sales report on Tuesday.

The Hang Seng Tech Index has dropped more than 7% this year, trailing the Nasdaq 100 gauge’s gain of more than 26% in a reflection of the broader malaise afflicting Chinese equities. A slowing economic recovery with few signs of policy support and Beijing’s rift with Washington are undermining sentiment toward China’s assets.