Top 5 Falling Chinese Tech Stocks

In this article, we discuss the top 5 falling Chinese stocks. If you want to read our detailed discussion on the Chinese stock market and technology sector, head over to Why Are Chinese Tech Stocks Falling.

 5. SOS Limited (NYSE:SOS)                       

Share price performance for the past 2 years: -96.5%

Number of Hedge Fund holders: N/A

SOS Limited (NYSE:SOS) delivers data extraction and analysis solutions to both corporate and individual clients in the People’s Republic of China. The company offers marketing data, technological tools, and resolutions tailored for insurance firms, emergency assistance services, as well as portals pertaining to insurance products and healthcare information. In the past years, it has shifted its focus to cryptocurrency mining, blockchain-driven insurance, and security management enterprises. 

Given the reduction in value for existing shareholders and the unimpressive pricing of the offering, it’s understandable that the SOS Limited (NYSE:SOS) stock is experiencing a decline for the past 2 years. This decline increased further when China placed stringent laws against cryptocurrency in order to maintain national security and social stability. In 2021, according to the Wall Street Journal, The Central Bank of China declared that any transactions involving cryptocurrencies are illegal, reaffirming the nation’s strict position against digital alternatives to government-issued currency. Both of these reasons could have led to the firm’s stock taking a serious hit in the past two years.

4. Luokung Technology Corp. (NASDAQ:LKCO)            

Share price performance for the past 2 years: -97.6%

Number of Hedge Fund holders: N/A

Luokung Technology Corp. (NASDAQ:LKCO) is involved in delivering location-based services and mobile application products tailored for individuals traveling on long-distance trains within the People’s Republic of China. Throughout the year, Luokung Technology Corp. (NASDAQ:LKCO)’s stock has exhibited significant instability due to difficulties faced in China and uncertainties within the market regarding the small-cap technology firm. Notably, the company was once included on the Pentagon’s entity list, implying it was at risk of delisting from Nasdaq. 

3. Quhuo Limited (NASDAQ:QH)               

Share price performance for the past 2 years: -99.3%

Number of Hedge Fund holders: N/A

Quhuo Limited (NASDAQ:QH), through its subsidiaries, runs a workforce operational solution platform in the People’s Republic of China. It provides tech-enabled and end-to-end operational solutions to on-demand consumer service businesses in industries, including food and grocery delivery, bike-sharing, ride-hailing, and housekeeping.

Since Quhuo Limited (NASDAQ:QH) didn’t generate profits over the past year, it’s improbable that a strong correlation will exist between its stock price and its earnings per share (EPS). Despite not being profitable, Quhuo Limited (NASDAQ:QH) managed to increase its revenue by 47% within the last year, a growth rate significantly higher than that of many other companies operating without profits. However, this growth didn’t prevent a 65% decline in the share price. This moved the needle of cumulative decline in share price over the past two years to a whopping 99.3%. Generally, growth stocks of this nature tend to exhibit volatility, with certain investors expressing concern about the company’s ongoing losses. This means, as divestments continue to increase, share price will undoubtedly continue to decrease.

2. Powerbridge Technologies Co., Ltd. (NASDAQ:PBTS)                      

Share price performance for the past 2 years: -99.4%

Number of Hedge Fund holders: N/A

Powerbridge Technologies Co., Ltd. (NASDAQ:PBTS) delivers software applications and technological solutions in China as its main focus. The company’s offerings, known as Powerbridge Digital Solutions, include Trade Enterprise, Trade Compliance, Import & Export Loan, and Insurance Processing. These solutions aim to assist customers in optimizing their trade activities, trade logistics, and adherence to regulatory requirements. 

The services being provided are practical and rational, such as handling import and export documentation processing, for example. However, these are generally not highly profitable ventures and unlikely to be the foundation of a highly lucrative business. This has contributed to a very slow revenue growth and a steep decline in the two year stock performance.

1. Infobird Co., Ltd (NASDAQ:IFBD)                      

Share price performance for the past 2 years: -99.6%

Number of Hedge Fund holders: N/A

Infobird Co., Ltd (NASDAQ:IFBD) functions as a provider of customer engagement solutions powered by artificial intelligence in the People’s Republic of China. The services provided by the company include cloud-based customer relationship management, encompassing software-as-a-service (SaaS) and business process outsourcing, which are offered to its clientele. 

In their Securities and Exchange Commission (SEC) filing, the firm declared that they encounter different challenges related to the laws and operations in China, where they are primarily based and operate. The laws and rules there are intricate and constantly changing. For instance, they are at risk due to recent statements and actions by the Chinese government. These include issues like how they are structured as a company, getting approvals for offerings outside of China, worries about fair competition, and government actions related to regulations and data security. These challenges could affect their ability to do business, get investments from abroad, or be listed on foreign stock exchanges like in the United States. These reasons seem to have negatively impacted the share price over the past two years, causing it to decline by 99.6%.

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