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New York, NY – September 19: The Chinese flag flies outside the New York Stock Exchange during the initial price offer (OPI) for Alibaba Group on September 19, 2014 in New York City. The New York Times reported yesterday that Alibaba had raised $ 21.8 billion in its initial public offer so far.
Andrew Burton | Getty Images News
The technological actions that appear in Hong Kong fell into the correction territory on Monday, since investors reserved profits, while the uncertainty of the commercial war and the United States moves to restrict Beijing’s access to high -end technology also weighed in the feeling.
The Hang Seng Tech index, which tracks some of the largest continental technology companies that appear in Hong Kong, has decreased by 11% Since its maximum of March 18, after falling more than 2% on Monday.
Chinese and international institutional investors began to return to Chinese actions after Beijing announced stronger stimulus measures last September. The entry of investors brought the HANG Seng Tech index to a maximum of three years earlier this month.
The Chinese technological actions obtained a strong impulse since the R1 model of the launching startup in January challenged the ecosystem of the United States led by the United States, claiming a performance greater than costs much lower than other established players.
Hong Kong’s stocks, particularly Alibaba and Tencent, Sierra Net purchases of continental Chinese investors hit record recently.
“There have been many false manifestations in China’s technological actions in the last three years and this could also be the same,” said Niles of Niles Investment Management, adding that this is especially the case if the tariffs of the United States are more punitive than expected or if China once again “changes to these companies.”
Chinese markets remain significantly more volatile than the United States and other developed markets, CLARNOMICS CEO James Liu told CNBC, adding that factors such as a growing commercial war will probably continue to increase volatility.
“For most investors, investing in China’s technological actions should be seen as a way of diversifying portfolios that have probably concentrated in too concentrated in American technology,” Liu said.
“There are no bad specific news for China’s technological actions, so recent correction is largely due to the winning of the recovery of relatively moderate China,” said Vincent Chan, a Chinese strategist of Aletheia capital.
The setback is “normal” after the strong demonstration this year, Vey-Sern Ling, Senior Variable Rent Advisor of UBP, who believes that the feeling of investors remains positive for the country’s technological scene was echoed.
“Innovation has returned, and the government is clearly supportive,” said Ling, who added that China Tech actions still have space to appreciate the back of a strong season of profits and low assessments in relation to global counterparts.
The Chinese MSCI index is currently traded 12.58 times its projected 1 year earnings, compared to S&P 500, which is quoted 20.21 times the projected 1 year profits, showed the FACTSET data.
