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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.

The Tencent headquarters in Shenzhen.

Photographer: Qilai Shen/Bloomberg
Updated on

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., Inc., Apple Inc., Microsoft Corp. and Google parent Alphabet Inc. -- has declined 11%.