Wall Street’s Slashed Prices Reflect New Reality for China Tech
- Some brokers turn to more conservative ways of valuing stocks
- Investors remain cautious to buy following recent rebound
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After years of breakneck growth that catapulted Chinese tech firms into stock market giants, a number of strategists are coming to terms with the new reality of a sector beset by slower expansion and lower earnings.
Morgan Stanley has lowered target prices for tech firms including Alibaba Group Holding Ltd. and Tencent Holdings Ltd., while China International Capital Corp. said this week it assumes zero valuation for some tech investments in 2022. JPMorgan Chase & Co. slashed its target prices across China tech last month, some by more than a half, after changing their valuation model.