JPMorgan Analyst Known for Bearish Call Touts China Tech Stocks
- Sees about 20% to 25% share price upside for China tech
- Macro developments key to stabilize share price trend: Yao
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Chinese tech shares are benefiting from signs of an improving economy, and will stage another rally when they deliver better earnings, according to an analyst who once questioned the sector’s investability.
The stocks are taking a breather after advancing earlier this year, but there’s room for 20% to 25% more upside as fundamentals such as cost and competition improve, said Alex Yao, co-head of Asia TMT research at JPMorgan Chase & Co. Yao called a bottom for the sector in an April report.