The latest tech sell-off underscores that it’s still a different game for investing in China versus the U.S. “The U.S. decline was primarily triggered by earnings miss[es] from some market leaders, but in China it was mainly sentiment spillover plus portfolio adjustment/rotation,” said Ding Wenjie, investment strategist for global capital investment at China Asset Management Co. “For the chip and AI sector, the long-term drivers of both domestic substitution and global AI computing demand remains intact,” she said, adding that, “besides chips, China’s electrical and grid equipment companies and materials sector will also benefit from the AI capex cycle.” Following last week’s U.S. tech stock plunge, China’s tech giants tumbled in Hong Kong trading, sending the sector index into a bear market . Chip companies Hua Hong Semiconductor and SMIC were among the biggest losers over the last five trading days with losses of nearly 15% and around 10%, respectively. Short video and artificial intelligence video generation company Kuaishou fell by 11% during the same time period. Tencent lost around 9.5%, and Alibaba fell more than 8% in Hong Kong over the last five trading days. But that didn’t stop mainland China-based investors from pouring into Tencent and Alibaba, the top two Hong Kong stocks by net mainland investor buying on Wednesday and Thursday, according to Wind Information dat …
