Chinese AI and chipmaking stocks listed in HK are soaring today.
$SENSETIME-W(00020)$ +17%
$SMIC(00981)$ +23%
Why? Because Beijing isn’t sitting on the sidelines anymore. They’re unleashing one of the biggest - if not THE biggest - stimulus package in history.
Now that funds are taking a good hard look at China again, they realize these companies continue to trade at fractions of the sizes of Western peers. And that Biden’s efforts to keep them down have only yielded the opposite results.
It’s going to be a few more years before China rivals the US for the most advanced chip design and chipmaking tech. But they’ll get there… and funds are making sure they don’t miss the boat.
I find this very hard to believe. Any fund having a short position in a stock that went up 50% or more in less than a month is going to have big problems, especially when the outlook for those stocks is improving by the day.
$KraneShares CSI China Internet ETF(KWEB)$ $KraneShares Hang Seng TECH Index ETF(KTEC)$
https://twitter.com/BrianTycangco/status/1842092546480341426
Comments