Chinese tech stocks listed in Hong Kong have recently experienced a significant decrease, dropping by around 20% since their peak in October. This decline is believed to be a result of investors reducing their holdings due to increasing geopolitical risks and growing caution regarding earnings forecasts.

The Hang Seng Tech Index saw a decline of 3.2% on Thursday, with major contributors to this drop being JD.com Inc and Xiaomi Corp. The overall weakness in the tech sector has also affected the broader benchmark of Chinese shares in Hong Kong, which fell by 2.2%.

Investors are becoming more cautious and are reducing their holdings in Chinese tech stocks due to the geopolitical risks and uncertain earnings forecasts. This has led to a significant decrease in the value of these stocks, with the Hang Seng Tech Index experiencing a decline of 3.2% on Thursday. JD.com Inc and Xiaomi Corp were major contributors to this drop. The broader benchmark of Chinese shares in Hong Kong also fell by 2.2% as a result of the weakness in the tech sector.