BUZZ-China tech ADRs rebound; UBS says sector remains attractive

Reuters02-25
BUZZ-China tech ADRs rebound; UBS says sector remains attractive

** U.S.-listed shares of Chinese tech companies regain ground after steep losses in the previous session

** Concerns about U.S. investment curbs on China saw ADRs tracking stocks fall on Monday

** Alibaba BABA.N up 4%; stock tumbled over 10% in its worst day since Oct. 2022 on Monday, Hong-Kong listed shares 9988.HK fell over 3%

** Alibaba to release an open-source version of its video and image-generating AI model

** But a report late Monday that the U.S. is considering tightening chip exports to China weighed on Chinese listings during Asian trading hours

** UBS says still has "attractive" view on China internet stocks given improving fundamentals, shareholder returns and macro policy support

** "We think China's internet sector should outperform amid early signs of success in AI innovation" - UBS

** But brokerage says that U.S.-China tensions and China's economic concerns are likely to weigh on sector in the near term

** JD.com Inc JD.O and PDD Holdings PDD.O rise 2% and 1.2% respectively

** Gaming stock Bilibili Inc BILI.O up 2.5%

** Search engine giant Baidu Inc BIDU.O gains 0.3%; co purchases JOYY's YY.O China live-streaming business for about $2.1 billion

** IShares MSCI China ETF MCHI.O up 1%, KraneShares CSI China Internet ETF KWEB.K gains 0.5% and Roundhill China Dragons ETF DRAG.K up 2.2%

** KWEB ETF up over 17% YTD, Hang Seng Technology Index .HSTECH up over 27% YTD versus a 2.2% loss in U.S. technology stocks .SPLRCT

(Reporting by Lisa Mattackal)

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