TCEHY - JPMorgan Analyst Turns Bullish On Chinese Tech Stocks Amid Improving Economic Signs Sees Up To 25% Surge: 'China Macro Stabilization' The Key | Benzinga
A JPMorgan Chase & Co analyst, who was previously bearish on China’s tech sector, is now predicting a significant increase in stock prices.
What Happened: Alex Yao, the co-head of Asia TMT research at JPMorgan, has made a remarkable shift in his stance on China’s tech sector. Yao, who was once skeptical about the sector’s potential, is now forecasting a 20-25% increase in stock prices, reported Bloomberg on Wednesday.
Yao attributes this potential growth to an improved cost structure and less aggressive competition. He also emphasizes the significance of macroeconomic developments in stabilizing the sector’s share price trend.
This change in tone from a notable skeptic like Yao is indicative of a broader shift in sentiment toward China’s tech market, which has been underperforming for several years. Major players like Tencent Holdings Ltd have led this resurgence, coinciding with Beijing’s shift from stringent regulatory measures to policies aimed at boosting the economy.
Despite uneven growth in China, signs of economic recovery such as improving consumption and robust exports are providing some reassurance to investors. However, concerns remain about the potential impact of geopolitical risks and a growing price war ...