As China Tech Stocks Roar Back, a New Normal Will Test Upside
- Hang Seng tech’s 60% surge still leaves index far below peak
- Investors see fundamental changes in business environment
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Chinese tech stocks are suddenly back in Wall Street’s favor, but that doesn’t mean investors and analysts expect the sector to regain its former glory any time soon — if ever.
From Goldman Sachs Group Inc. to Morgan Stanley, a growing number of strategists have made bullish calls following President Xi Jinping’s Covid Zero exit and vows to end a crackdown on the sector. The shifts have spurred a 60% rally in the Hang Seng Tech Index since an October trough, a world-beating feat even though the gauge’s market value is still half of its February 2021 peak.