Cheap Is Relative in China Tech Rally as Bulls Buy Tencent
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The rally in Chinese technology shares that has made the U.S. dot-com bubble look tame is also making Tencent Holdings Ltd. look cheap.
Evidence that traders sense a bargain is visible in the options market, where dealers were charging 5.9 points more for calls that pay out should Hong Kong-listed Tencent gain 10 percent than they were for bearish bets on Wednesday, data compiled by Bloomberg show. The gap was 8 points on April 17, the widest in the data dating back to February 2010. The stock fell 2 percent to HK$160.90 at today’s close.