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China Tech Stocks Rebound on Dip Buying After Historic Rout

Published 03/16/2022, 01:20 PM
© Bloomberg. An electronic screen displays the Hang Seng Index, top, and Hang Seng China Enterprises Index (HSCEI) in Hong Kong, China, on Tuesday, March 15, 2022. Chinese stocks suffered another deep selloff on Tuesday as concerns about the country’s ties with Russia and persistent regulatory pressure sent shares on a downward spiral. Photographer: Paul Yeung/Bloomberg
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(Bloomberg) -- Chinese tech stocks rebounded after a steep selloff over the past three sessions, as some investors spotted buying opportunities even as geopolitical and regulatory risks abound. 

The Hang Seng Tech Index climbed 6.3% in early trading on Wednesday, erasing some of the 22% decline since late last week that saw the gauge touch new lows every day. Bilibili (NASDAQ:BILI) Inc. and GDS Holdings (NASDAQ:GDS) Ltd. were the best performers, gaining around 15% each. The move tracks an advance overnight in its U.S.-listed counterparts. 

Investors are weighing cheap valuations following the historic rout against poor sentiment in the sector as regulatory risks linger, including a possible U.S. delisting of Chinese firms. Concerns related to Beijing’s ties with Russia and a lockdown in China’s tech hub Shenzhen are also adding to worries.

Five Charts Showing the Brutal Two-Day Selloff in China Stocks

JPMorgan Chase & Co. (NYSE:JPM) earlier this week labeled some Chinese internet names as “uninvestable.” 

©2022 Bloomberg L.P.

© Bloomberg. An electronic screen displays the Hang Seng Index, top, and Hang Seng China Enterprises Index (HSCEI) in Hong Kong, China, on Tuesday, March 15, 2022. Chinese stocks suffered another deep selloff on Tuesday as concerns about the country’s ties with Russia and persistent regulatory pressure sent shares on a downward spiral. Photographer: Paul Yeung/Bloomberg

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