Investors Love China Tech Stocks, Despite Trump's Tariff ThreatsBy
Reports that President Donald Trump is about to slap tariffs on China’s tech products haven’t dented investor enthusiasm for such stocks.
The MSCI China Index, a gauge that is two-fifths technology, has inched higher in the past two days and is on track for a second week of gains. Shares of Hong Kong-listed AAC Technologies Holdings Inc. and Lenovo Group Ltd., which count North America as their biggest market, saw just a small blip.
The question is whether fears around global trade wars could eventually infect the stock market, denting sentiment toward the $1.4 trillion worth of Chinese tech and Internet companies that trade abroad. Those are the very stocks that clocked up some of the best returns for investors overseas and almost single-handedly lifted the MSCI China in the past two years.
If investors are worried, they’re not showing it. The MSCI China was up 0.3 percent as of 11:41 a.m. in Hong Kong on Thursday, with tech among the biggest gainers.