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China Tech Stocks Outlook Improves Year After $1.5 Trillion Rout

  • Some indicators suggest Chinese tech names are good to buy now
  • Tech rally started to fall apart in February 2021 on crackdown
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WATCH: Catherine Yeung, investment director at Fidelity International, discusses her calls on China, PBOC policy and her outlook for earnings and the yuan.Source: Bloomberg
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A yearlong slide in Chinese technology stocks that wiped out $1.5 trillion in market value may finally be ending as investors look beyond regulatory hurdles to focus on valuations. 

Just 12 months ago, a rally that pushed Hong Kong’s Hang Seng Tech Index to the highest level since a July 2020 inception started to unravel as traders raced to the exit over sky-high valuations and Beijing’s sweeping crackdown on private enterprise.