4 Chinese Tech Stocks That are Bouncing Back

These four Chinese tech heavyweights are turning up the heat in the fight for global dominance as they take on their American rivals.

Vikram Barhat 29 July, 2020 | 12:29PM

People walking in Shanghai

China appears to be recovering well from the coronavirus-induced economic slump. Shaking off its 6.8% contraction in the first quarter resulting from the pandemic lockdown, the Asian economic giant’s economy is picking up faster than Europe and the US. Indeed, the Shanghai Composite Index rose 5.7% to a two-year high on July 6.

Investors may find attractive opportunities in the tech sector. These Chinese tech heavyweights have global ambitions and are turning up the heat in the fight for global dominance as they take on their American rivals. They enjoy favourable government policies and lax regulation and are beneficiaries of the growing affluence amongst China’s middle class.

Alibaba Group Holding Ltd
  Ticker BABA
  Current yield: -
  Forward P/E: 31.25
  Price US$249 (£192)
  Fair value: US$263 (£202.80)
  Value 5% discount
  Moat -
  Moat Trend Stable
  Star rating ***
Data as of July 28, 2020

 
Chinese e-commerce juggernaut, Alibaba (BABA) is the world’s largest online and mobile commerce company that operates online marketplaces, including Taobao and Tmall. China accounted for 68% of revenue in 2019.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Vikram Barhat  is a Toronto-based financial writer specialising in investing, stock markets, personal finance and other areas of the financial services industry. 

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies