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COMING UP:Share Opener Variant 2

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Transcript

00:00:02
>> Wan Yu Yi used to run a studio full of game designers in China she'd struck gold after building an award winning adventure game but now she's just one of many entrepreneurs hit by trouble in China's massive tech sector. Tumbling stock prices have wiped nearly half a trillion dollars from the value of the country's top listed tech firms this year alone.
00:00:23
For one it means she's now coding from home with a skeleton crew of freelancers>> In 2015 a lot of young people were setting up small businesses like game developing. They dreamed of big money and freedom, but now they see they were unrealistic and have left the industry.
00:00:40
>> China is facing what seems to be a perfect storm in the tech sector this year, even the big guys like Alibaba, they're dealing not only with the US- China trade war, but also a slew of home grown problems. Reuter's Kate Cadell explains.>> The industry as a whole has reached a point where rapid growth just isn't really possible the same way it was the first half of the decade.
00:01:02
So we had companies like AliBaba and JD who were taking advantage of this huge middle class in big urban cities like Beijing and Shanghai just has already been tapped out. It doesn't really exist anymore.>> Companies are trying a variety of strategies to cope with shrinking markets. Like reaching out to consumers in rural areas, but they also have another set of problems to worry about.
00:01:22
>> The Chinese government, after years of this rapid growth, is realizing that certain parts of the industry need to be regulated. We've seen new game licenses essentially suspended for a large part of this year which has had a huge effect on the video game industry.>> That means, companies like AliBaba and Tencent which almost doubled in value last year are now seeing that trend reversed.
00:01:44
With money tight, companies are being forced to make tough decisions about things like hiring. Demand for tech jobs is down by 50% compared to last year. Analysts say it's hard to predict how long a tech recovery might take, a fast end to the trade war might do it, but most companies aren't expecting a turnaround until next year at the earliest.