Huachu Securities: The related "tax" rumors are a result of excessive speculation, and do not have solid evidence.

On the morning of February 3, Hong Kong stocks were originally following the strength of overseas markets. However, the Hang Seng Tech Index suddenly plunged significantly after 10 am, with internet giants collectively falling. Among them, Kuaishou fell by more than 7%, while Baidu Group, Bilibili, and Tencent fell by more than 5%. The Hang Seng Tech Index fell by more than 3.1% at one point. The main cause of the market sell-off is still the "taxation" rumor. During the sell-off of internet giants' stock prices, there was widespread dissemination of news about "China adjusting the recognition of high-tech enterprises and related tax policies." Analysts believe that this kind of "speculation" has been spread in the market not for the first time, and similar reports were made by foreign media last year, but it did not materialize. Further monitoring is needed, and it is believed that policies will be implemented cautiously. Huachuang Securities believes that the above rumors are based on excessive speculation and do not have solid grounds. Additionally, increasing taxes on internet companies may directly impact consumer spending, which goes against the current policy of promoting consumption and is logically inconsistent.