Why China’s investors ignored the panic and bought Hong Kong’s tech dip
The post Why China’s investors ignored the panic and bought Hong Kong’s tech dip appeared on BitcoinEthereumNews.com.
When Wall Street’s tech giants tumbled last week on earnings disappointments, China’s tech sector followed them down in Hong Kong trading. But the reason each market fell tells a different story and that could determine where investors put their money next. The US decline came from companies missing earnings targets and raising concerns about returns on massive AI spending. China’s drop was mostly sentiment spillover and investors rotating their portfolios according to Ding Wenjie, an investment strategist at China Asset Management Co. That left China’s tech valuations far more attractive, even as Hong Kong stocks entered a bear market. Hong Kong-listed Chinese tech giants took heavy losses over five trading days. Chip companies Hua Hong Semiconductor fell nearly 15 percent and SMIC dropped around 10 percent. Short video company Kuaishou lost 11 percent, Tencent declined about 9.5 percent, and Alibaba fell more than 8 percent. Mainland Chinese investors ignored the Hong Kong sell-off. They poured money into Tencent and Alibaba, making them the top two Hong Kong stocks by net mainland buying on Wednesday and Thursday, according to Wind Information data seen by CNBC. The gap comes down to valuation. The KraneShares CSI China Internet ETF trades at 16 times its price-to-earnings ratio. The mainland China tech innovation-focused KraneShares SSE STAR Market 50 Index ETF trades at 45 times. Some Chinese tech stocks gained ground. Top performers in the STAR 50 Index included semiconductor materials company SICC, vacuum robot maker Roborock, AI industrial automation firm Supcon, and smartphone maker Transsion. Solar-related names climbed on reports of potential new deals tied to Elon Musk. Massive valuation gap between US and Chinese tech US software stocks cratered on fears that AI tools like Anthropic’s Cowork would disrupt their business models. ServiceNow is down 28 percent year-to-date and Salesforce down 26 percent. Chinese…
Filed under: News - @ February 8, 2026 5:16 pm