China tech stocks seen as a better bet than under-fire US peers

At a brokerage house in Shanghai in 2018. Chinese Internet stocks will keep outperforming their US counterparts in the months ahead. — AFP

Chinese Internet stocks will keep outperforming their US counterparts in the months ahead as regulatory challenges to America’s technology giants mount in Washington DC and Brussels, according to some investors.

Their reasoning includes expectations that weakening the US megacaps will help bolster the relative attractiveness of Chinese technology companies, which are continuing to invest in areas of growth. Meantime, the growing uncertainty over prospects for the US sector could send buyers to their cheaper Chinese peers which are still being championed by the government in Beijing.