Shares by major Chinese technology companies such as JD.com Inc.
And Mayitu 3690 9.13%
On Wednesday, some investors added that they would make good money in the sector after 2021.
Analysts and investors say Chinese technology stocks listed in Hong Kong were not a clear stimulus for the rally. But buyers seem to be reviewing the sector in the new year, with low speculation and a new decline in Beijing.
After a year of siege, the sector has finally benefited from no new measures, said Qi Wang, CEO of Mega Trust Investment (HK).
“The Chinese government must now take the time to crush the companies and comply with these new rules,” Wang said.
Meituan and JD.com shares jumped 9% and 11%, respectively, in Hong Kong. This helped boost the city’s Hang Sing Tech Index by 5 percent.
A.D. The index, which was launched in July 2020, has now recovered by about 11% after a low closing record last Wednesday. Ltd.
, Billy Ink.,
And Tencent Holdings Ltd.
The measure decreased by a third last year.
Numerous small demonstrations have taken place in recent months, but if the crackdown continues, this recovery could be even more lasting, said Catan Sees, an Asia-Pacific equity strategist at Nomura. “The companies themselves are ready for some very exciting long-term investment themes.”
According to David Chao, an Asia-Pacific global market strategist at Invenco, his company “has a very positive outlook on Chinese stocks, especially in technology,” compared to last year.
As of Tuesday, the sector’s heavy-duty tenant shares traded at about 24 times higher than expected expectations, according to Refinitiv, a 29-fold drop from a year ago.
Other big names on Wednesday include Alibaba, Baidu Inc.
And Bilibili, shares in Hong Kong grew by about 6 percent each. All three are listed in the US
Some marketers are wary. Marcela Chaw, a global market strategist at JP Morgan Property Management, said the meeting of the Chinese National People’s Congress (NPC) in March should provide more control.
“It simply came to our notice then. [there is] “More policy transparency in China’s technology sector,” she said.
Write Rebecca Feng at email@example.com
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