Down $732 Billion, Chinese Tech Stocks Are Still Far From Cheap

  • Shares have tumbled on China, U.S. regulatory concerns
  • But valuations fell even further during the last two downturns

The Tencent Holdings Ltd. headquarters in Shenzhen.

Photographer: Qilai Shen/Bloomberg
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Bargain hunters may want to think twice before piling into China’s beaten-down technology stocks.

While the industry rallied Friday on bets a $732 billion selloff in the biggest Chinese tech giants had gone too far, history suggests there’s room for more downside.