China Tech Titans Make a Comeback as US Peers Stumble
- Optimism on Beijing crackdown fuels turnabout in sentiment
- Higher rates, recession concern weigh on US tech stocks
The Tencent headquarters in Shenzhen.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
An easing of China’s regulatory crackdown is lifting the shares of the nation’s giant technology companies, helping them to finally outperform their US counterparts after a dismal year.
An equal-weighted basket of China’s three internet giants -- Baidu Inc., Alibaba Group Holding Ltd. and Tencent Holdings Ltd. -- has rallied 37% since mid-March, according to calculations by Bloomberg. In contrast, a portfolio of their US peers -- Meta Platforms Inc., Amazon.com Inc., Apple Inc., Microsoft Corp. and Google parent Alphabet Inc. -- has declined 11%.