China’s waves of crackdown against its biggest internet companies are fuelling demand for technology stocks – a group that has so far remained untouched by the regulatory storm – in its onshore markets.
While trades linked to the likes of Alibaba Group Holding, Tencent Holdings and Meituan have been unwinding in Hong Kong this year, gauges tracking mainland China-listed technology stocks have been on a stellar run. The ChiNext index of small companies rose to a six-year high last week in Shenzhen, and a gauge tracking the 50 most valuable companies on Shanghai’s technology-heavy Star Market touched its highest level in a year this month.
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