Chinese Tech Stocks Still Have Valuation Appeal After Rally
- Sector trades at deep discounts to US peers, historical levels
- ‘We are far from reaching the top’: GAM Investment’s Cortesi
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The cheap valuations for Chinese tech stocks are appealing to more investors after an earnings season with better profits, more buybacks and dividends.
Analysts have raised the Hang Seng Tech Index’s forward-earnings estimates to a three-year high after Tencent Holdings Ltd. and others delivered better-than-expected profits. The results, coming after Beijing eased its years of regulatory crackdown, suggest that shares of Chinese tech firms may have bottomed.