After losing $ 350 billion ... the Chinese technology sector in the graphic range
With the start of Chinese technology stocks to compensate for a part of its big losses that have recently incurred, some investors and analysts are awaiting the upcoming concerns that could be worse than customs duties that Donald Trump announced. The Hanging Technology Index has lost more than $ 350 billion from its market value since the highest level in March, although it has earned 9% over the past three sessions. Although rapid development in the field of artificial intelligence in China is still an important positive factor, the escalating geopolitical tension is currently on the scene. Fire approaches Chinese US measures against China, such as imposing financial investment restrictions or introducing additional sanctions, which pose “serious risks”, according to Bush Chu, investment manager at Aberdeen Investments. There are also unconfirmed discussions about the possibility of a compulsory removal of Chinese shares of US stock exchanges, and some fear that additional restrictions on the use or purchase of advanced technology. Zhou said such procedures could lead to a ‘sharp sale’ of the shares of Chinese technology companies owned by foreigners in a large percentage. I believe that many things have not yet been reflected in the prices, “and note the broader impact on the demand if customs duties are weakened by the Chinese economy in general. The Chinese economy could suffer from the sharp increase imposed by US President Donald Trump on customs duties to achieve 145% and reach the economic separation process between the two countries. Increasing tension. -Lights that Trump imposed on China, we believe that the removal of US stock exchanges is an important option under the retaliation. This means that the risks associated with the situation have become worse this week compared to the past week, which increases the possibility of measures, “said Jarrett Seburg, TD Cowen, in a research note. Put Chinese companies in the black list. -Sheacard does not include any specific sanctions, discouraging US businesses and bodies to trade with these Chinese businesses. Enterprises index jumped. The shares of Chinese technology companies have become very attractive this year, as the success of Deep Seck investors has led to invest in artificial intelligence enterprises listed in the country. The escalation of the trade war has again paid attention to US efforts to limit China’s access to the latest technology. Analysts at City Group, including Elisia Yap, have written in a research note, “although we are not sure whether the United States intends to announce any new restrictions on the export of discs, the fear that the technological companies that provide cloud services and basic abilities/ capabilities of artificial intelligence can be interrupted and sanctions. They added that the situation ‘can print’ tenons’, ‘ali baby’ and ‘Baidu’. The attractive evaluation of the technological sector despite the challenges that the sector still has an attraction to the evaluation, as the Hanging Singh technology index trades on 15 times the expected profits, which is within three years of 19 times less than average, and less than the current level of the Nasdac 100 index of 24 times. This group’s dependence on domestic demand also makes it eligible to take advantage of Beijing’s efforts to support the economy. Zhou of the “Aberdeen” business said that the most important Chinese technology companies still retain their relative attractiveness, and concluded: “Even if investors decide to enter the Chinese market to leverage the opportunities for artificial intelligence, they may be awaiting at the moment as a result of the prevailing ambiguity.