Hang Seng Tech is up 15% in 1 month: 5 China Tech Stocks to Ride the Recovery

Trending 1 week ago

The nighttime is ever darkest earlier nan dawn.

Although I americium not wholly judge that it is now dawn for nan Hong Kong market, I must admit that it has been a boon for those accumulating beaten-down Hong Kong bluish chips.

It would person been an easy 15% summation astatine slightest since nan full Hang Seng Tech scale is up by 15% successful nan past month.

For nan method camps aliases nan trend-chasing traders looking for a revival sign, this mightiness beryllium it!

In lawsuit you are excessively retired of touch connected what stocks to attraction connected successful this rebound, present are 5 China tech stocks.

Tencent Holdings Ltd (HKG: 0700)

Tencent hires hundreds of contented patrols pinch QQ virtual coins · TechNode

Even though Tencent has been undervalued for plentifulness of years, I will ever judge nan time erstwhile I did my first study of nan company.

The Tencent ecosystem and walled plot are acold superior compared to its ‘Magnificent Seven‘ counterparts successful nan States. Its first mover advantage arsenic China’s de-facto chat app and costs solutions is the Promised Land that WhatsApp wanted to scope but is still not location yet.

Throw successful nan gaming empire and nan fingers it has dipped successful galore different gaming companies astir nan world, positive Tencent Video, and you virtually person a Meta Platforms Inc (NASDAQ: META)+ Activision Blizzard + Netflix Inc (NASDAQ: NFLX) chimaera.

If Tencent wasn’t a Chinese stock, it would person had a price-to-earnings valuation of astatine slightest 35x. It is presently a whiskers’ awkward of 30, trading astatine a trailing P/E of 29x.

NetEase Inc (HKG: 9999)

NetEase ranks arsenic 1 of nan apical fewer net exertion and gaming companies successful China. Do not fto its position arsenic a Chinese gaming institution fool you – its games are 1 of nan apical downloaded and played astir nan world.

Its worth proposition is straightforward – it offers nan aforesaid crippled genre but pinch somewhat little graphics requirements to cater to nan wide market.

As affordable mobile phones and mobile gaming go much mainstream, nan request for a better-optimized gameplay acquisition connected little powerful chips sees NetEase operating good wrong this segment.

Taking a leafage retired of Tencent’s VC attack successful investing successful gaming studios, NetEase excessively has been investing successful plentifulness of smaller studios astir nan world.

It is still trading astatine a P/E ratio of 16x, comparatively inexpensive for a profitable tech company.

Alibaba Group Holding Ltd (HKG: 9988)

The Tesla of HK tech.

Not from a business constituent of view, but successful position of grabbing nan headlines astir of nan time.

The Amazon of China flourished during nan aureate property of nan internet. There person besides been galore caller initiatives, ranging from Cainiao, Freshippo, a premium shopping level Tian Mao,

But Baba shares person kept dropping for illustration a chromatic for a fewer years consecutively.

Only precocious did we spot stock prices breach nan 100-day moving average, and this time, gapping up.

They opportunity nan 5th time’s nan charm. It does look so.

But I stay wary of nan different e-commerce title successful this slow reddish oversea space.

JD.Com Inc (HKEX: 9618)

JD stock prices are up by almost 27% since past month, making it 1 of nan stocks that grew nan most.

It besides shares a narration pinch Walmart Inc (NYSE: WMT) established erstwhile nan US unit elephantine sold its China e-commerce business to JD successful speech for JD shares.

Just for illustration astir China tech, it is slow dipping its toes into various segments, aft building a resilient logistics limb to complement its e-commerce business.

Source: JD.com

That benignant of justifies its gross growth, which has an unbeaten maturation streak moreover during nan pandemic era.

Source: TIKR.com

Meituan (HKG: 3690)

The DoorDash Inc (NASDAQ: DASH) balanced of China is surely not having nan top clip for nan past 2 years.

Even though fundamentally Meituan has surgery into nan black, nan stock value was astatine a play down 85% from highest to trough.

The worst seems to beryllium nan extremity arsenic of now, arsenic Meituan rode together pinch nan Hang Seng Tech rebound, and is now almost 100% up from its low.

It still commands a lion’s stock of nan China on-demand nutrient transportation market. Its closest competitor – ele.me nether Alibaba, is still obscurity adjacent to its power aft truthful galore years.

Meituan mightiness look to person deed nan saturation point, but reports are calling for a 10.6% CAGR maturation for nan China nutrient transportation manufacture successful nan adjacent 9 years.

Water tin thief a vessel float but it tin besides descend it

This is 1 of my favourite Chinese idioms retired of nan thousands available.

And I deliberation it perfectly sums up what is happening to a batch of nan China stocks.

For excessively agelong Hang Seng, has remained neglected and oversold. The caller impetus and revival floated each types of Hong Kong and China stocks.

On paper, it could awesome nan revival of nan adjacent Hong Kong bull run.

But it besides intends much oculus balls connected nan performances of these companies. And if they are not successful statement pinch expectations, we could beryllium seeing sell-off connected nan underachievers.

For those who person accumulated Hong Kong tech stocks for nan past 1 year, your trial could beryllium conscionable astir nan corner!

Join our free webinar convention to find retired really we place and prime nan champion undervalued and maturation stocks. Register now!