Chinese-based stocks have all been under pressure on growing concern regarding the country’s market valuation relative to its economic fundamentals. For instance, according to Market Realist, valuations of Chinese technology stocks were trading with an average 220x their reported profits, which made them the most expensive shares compared to similar companies globally.
However, after the selling, with things more settled, some argue that Chinese tech stocks are more attractive.
“The Internet segment in China benefits from cyclical growth as well as secular trends,” Scott Kessler, an analyst at S&P Capital IQ, said on CNBC. “More people are getting online and buying goods and services.”
Global X Social Media Index ETF
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Max Chen contributed to this article.