The change in wording comes in face of a yuan sell-off that has pushed the currency to its weakest level against the dollar in more than a decade.
“Downward earnings revisions, stemming partly from regulatory changes affecting matters such as content dissemination and licensing, have weighed on sentiment for Chinese tech stocks in 2018,” according to BlackRock. “Analysts project a rebound in 2019 amid strong consumer demand, fiscal stimulus and waning regulatory hurdles. In addition, the U.S. and China tech sectors are increasingly different, creating distinct opportunities for investors.”
Related: China ETFs Buck the Trend, Strengthening on Government Aid
Beijing also increased support for private enterprises over the weekend through measures including a simplified process for listed companies to buy back shares, tax cuts of larger scale and more significant fee reduction on companies, Reuters reports.
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