New York, NY – September 19: The Chinese flag is flying outside the New York Stock Exchange during the initial offer of prices (IPO) for Alibaba Group on September 19, 2014 in New York. The New York Times reported yesterday that Alibaba has raised $ 21.8 billion in his initial public offer so far.
Andrew Burton | Getty Images News
The technical shares listed in Hong Kong on Monday fell on the correct territory because investors booked profit, while the insecurity in the trade war and the US transfer to limit Peking’s approach to top technology.
The Hang Seng Tech Index, which follows some of the largest Chinese technological companies with continental continents listed in Hong Kong, reduced 11% From March 18, after falling to over 2%on Monday.
Chinese and international institutional investors began to return to Chinese shares after Beijing presented stronger stimuli measures last September. The investor’s urge has been pushed by the Hang Seng Seng Tech Index on a three -year maximum earlier this month.
Chinese technological shares received a sharp reinforcement from the exit of AI startup Deepseek models R1 in January challenged the AI ecosystem under the leadership of the US, claiming that the top effect with much lower costs than other established AI players.
Hong Kong Stock, especially Alibaba and Tencent, Saw Net purchases from continental Chinese investors hit a record recently.
“There have been a lot of false gatherings in China Tech shares in the last three years, and that could be shown the same,” said Niles Dan Niles of Niles Investment Management, adding that this is especially the case if the US tariffs are criminal than they are currently expected or if China once again “shifting these companies.”
Chinese markets are still significantly more unstable than the US -Ai other developed markets, the CNBC CEO Clearnomics James Liu told CNBC, adding that factors such as growing trade war are likely to continue to add volatility.
“For most investors, investing in China Tech shares should be viewed as a way to diversification of portfolio, which have probably become overly concentrated on US technology,” Liu said.
“There are no special bad news for the Chinese technological part of the stock, so the recent correction is largely a consequence of taking profit and a relatively undermined recovery of China,” said Vincent Chan, Chinese strategist Aletheia Capital.
The return is “normal” after a strong rally this year, Vey-Sern Ling, an older Capital Advisor at the UBP, who believes that the feelings of investors are still positive about the technological scene in the country.
“Innovation has returned, and the Government clearly supports,” Ling said, adding that the supplies of Chinese technology still have room for the pipeline on the back of the strong earnings and low estimates compared to global colleagues.
The MSCI China Index currently traded 12.58 times more than a project of one-year earnings, compared to the S&P 500, which is traded 20.21 times projecting 1-year-old earnings, data from Factset showed.
