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But caution is needed to prevent repetitive investment in certain areas. Clarity as well as long-term vision are needed to ensure that resources are well utilized, Liu said.

But Xin also pointed out that the problem has not affected the fundamentals of the sector, and such pressure is pushing Chinese enterprises to seek innovation in high-end, smart, and green manufacturing.

But beyond the president’s itchy Twitter finger, investors were reacting to other concerns, including a potential trade war between the U.S. and China. And Amazon wasn’t the only tech stock to suffer, Facebook (-2.75 percent), Microsoft (-3.1 percent), Google (-2.31 percent) and Netflix (-5.1 percent) all slid. Tesla was also down 5.1 percent after a New York Times report about its autopilot system and a fatal crash in 2016.

But for the most part, colatecs do more good than harm, said Joo Won, an economist at the Hyundai Research Institute.

But now, all Yu needs to do is click on the application of the local RCC on his smartphone to apply for the loan, and the money will be sent to his account in a short time.