China’s most successful internet companies, like Tencent, Alibaba and Baidu, among others, are listed abroad on foreign exchanges like the New York Stock Exchange or Hong Kong Stock Exchange. These companies first chose to list on foreign exchanges in an attempt to gain more widespread recognition back when Beijing was limiting foreign exposure to Chinese A-shares.
“Fund managers surveyed by Bank of America Merrill Lynch in August judged long positions in U.S. and Chinese tech behemoths to be the most crowded trade for the seventh month running. Tech industry leaders in each of the world’s two largest economies are considered structural growth stories, with near monopolistic characteristics in some cases,” according to Bloomberg.
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Tom Lydon’s clients own shares of QQQ.