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New York, New York -September 19: The Chinese flag flies outside the New York Stock Exchange during the initial proposal (IPO) for Alibaba Group on September 19, 2014 in New York. The New York Times reported yesterday that Alibaba had raised $ 21.8 billion in its original public proposal.
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The technical actions listed in Hong Kong came to the amendments on Monday, when investors booked the profit, while uncertainty in the trade war and the United States is moving to limit Beijing to high -end technology.
The Hang Seng Tech Index, which tracks some of the largest mainland Chinese technology companies listed in Hong Kong, decreased by 11% Since March 18, the maximum after the fall is more than 2% on Monday.
Chinese and international institutional investors have begun to return to Chinese shares after the stronger stimulation measures were presented in September last year. The investor influx pushed the Hang Seng Tech Index to the three -year maximum earlier this month.
Chinese technological promotions have received a sharp increase since the release of the R1 Startup Deepek model in January disputed the AI Ecosystem under the leadership of the United States, saying more productivity at much less expense than other AI players.
Hong Kong reserves, in particular, alibaba and the step, saw Net purchases in mainland Chinese investors Hit A Write down the high Recently.
“There have been many false rallies in China Tech’s stocks in the last three years, and it may prove to be the same,” said Dan Nils of Niles Investment Management, adding it especially if tariffs from the United States are more punitive than currently, or when China “switches to prevent these companies.”
Chinese markets are still much more variable than American and other developed markets, Clearnomics CEO James Liu told CNBC, adding that factors as growing trade are most likely to continue adding volatility.
“For most investors, China Tech shares should be considered as a way of diversifying portfolios that are probably grown to be overly focused in American technology,” Liu said.
“There are no specific bad news for China Tech stock, so the recent correction is largely related to profit and relatively muted Chinese recovery,” said China’s ALETheia Capital strategist.
The retreat “normal” after a strong action this year repeated Vay-Sern Ling, a senior UBP promoter, who believes that investors’ sentiments are still positively positive for the country’s technological scene.
“The innovation has returned, and the government clearly supports,” said Ling, who added that China Tech’s stocks still have the opportunity to appreciate the profits and low assessments relatively global colleagues at the back of the strong season.
Currently, MSci China is trading 12.58 times, predicted 1-year profit, compared to the S&P 500, which is traded 20.21 times, predicting 1-year profit, FactSet data has shown.
