A year after Beijing launched its first public offering of $ 37 billion in public interest in Beijing, Chinese technology stocks are rising.
After falling to a low point in early October, China’s high-profile Internet equity gains double-digit gains. The Nasdaq Golden Dragon China Index rose 18 percent, while Hong Kong’s Hong Singing Tech Index jumped more than 13 percent.
Analysts are becoming more positive, with HSBC improving its position on Chinese stocks this week, saying investors are “very weak” on the country’s stocks. But the prospect of further sanctions still lingers in the sector, creating a yawning gap between Chinese technology stocks and the wider market.
Following the recent shock of Chinese markets and economic growth, the CSI 300 index of large Shanghai and Shenzhen stocks fell 5 percent this year, while the largest tech groups in Hong Kong and New York fell more than 20 percent. . On Wednesday, the Federal Communications Commission (FEC) voted to force China Telecom to shut down US business, sending technology shares in Hong Kong down 3.9 percent on the same day.
“The maximum strength may have already passed. . . But the regulation in space will continue because there is no internet control, “said David Choa, chief executive of BNP Paribas Asset Management. [regulatory moves] They are part of the big steps in the economy as a whole.
Analysts say big technology companies, including Alibaba and Tenson, are unlikely to rise to prominence after Dide Choking, the Ride-chil group listed in New York in early July.
According to Choa, some of the rallies may have come from investors who have closed their profits on Chinese technology. But as the food group Meituan received less punishment than expected and Ma’s re-emergence in Hong Kong and Spain, recent events have made him “think the market is probably the worst behind us,” he added.
Ma’s criticism of financial regulators was sparked last November by looting the IPO of Ant, Fintech and its sister company Alibaba and encouraging the first wave of control.
This puts Alibaba’s stock as one of the heaviest, with regulators dropping your list by about 45 percent and rival Tensent down by 16 percent. The two groups have been repeatedly targeted by regulators due to their wide influence from social media to payment process and personal finance.
But investors are quick to return to companies that have a lot of work to do. NetEase-based profits, for example, have increased their shares by 20 percent at the same time, despite new restrictions on access to online games for teens.
According to Alexander Treves, head of emerging markets at JPM Organ Property Management and Asia Pacific Equity Investment Expert, the game is one of China’s most attractive technologies, and many companies still “have good business models and many companies with long-term growth opportunities.” “Any pain that comes out of control”
But he said: “It’s too early to say whether technology teams are being monitored in Beijing and whether reviews are likely to return to normal levels before the DD list. Shares of Ride-Healing Company are still below 37% of IPO value.
“Any investor in China should know that the regulators are a fact of life,” he said.
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