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May 11, 2021 @ 12:28 +03:00
JPMorgan Asset Management is bullish on Chinese technology stocks even though regulators are cracking down on internet giants in the mainland. Shares of major Chinese tech companies such as Alibaba, JD.com and Meituan have tumbled this year as Beijing moved to rein in monopolistic behavior among internet giants. Howard Wang, head of Greater China equities at JPMorgan Asset Management, said the regulatory clampdown poses uncertainties in the near term. But in the longer term, Chinese tech companies still have the potential to grow, he said.
“If we look at these fundamentals, and you stretch over a longer period of time, I think we’re actually in a pretty good buying spot,” Wang told CNBC’s “Street Signs Asia” on Tuesday. Wang said price declines in Chinese tech shares — due to the regulatory risks or investors rotating out of growth stocks — appear overdone. That has resulted in “pretty decent value” in some Chinese tech stocks, he added. Without naming specific stocks, Wang said he likes large tech companies given their beaten down valuation and potential for earnings to grow.
Shares of tech giant Alibaba in Hong Kong fell around 7.48% this year as of Monday’s close. E-commerce companies JD.com and Meituan have dropped around 16% and 10.8%, respectively.
JPMorgan says China tech stocks are in a ‘good buying spot’ despite regulatory crackdown, CNBC, May 11