[alephnerd]

> Is this about China, or the U.S.?

There is a global contraction in VC and Growth funding. This has over-impacted Tech and Biotech.

VC and Growth Funds are used as a diversification method by institutional investors (the actual moneymakers), and they've begun moving to other financial instruments now that interest rates are higher.

Finally, this is more China specific, but Western capital was always a significant player in the Chinese tech scene. It was investors like Tiger Global, SoftBank, Golden Gate Ventures, Sequoia, etc who were major market makers in the Chinese scene. They've all began divesting from the Chinese markets in the 2019-20 period when rules around Chinese dual-listings were shored up by Chinese and American regulators, making it hard for investors to make a return on Chinese investments.

All this has lead to a much more difficult tech market globally and I don't see it recovering anytime soon. This is the new normal - 2017-2022 was a fantasy time.

> Now, as growth stutters and share prices suffer — China’s top five publicly traded tech companies have collectively lost about $1.3tn in market value from their peak levels in 2021