Tech stocks & China Concept stocks lead market gains amid banking crisis！
U.S. Treasury Secretary Janet Yellen reiterated on Thursday that she was prepared to take further action to ensure that Americans' bank deposits stay safe amid turmoil in the banking system.![]()
The turmoil in the financial sector following the collapse of two U.S. banks has made investors find a safe haven in the technology sector.![]()
$Netflix(NFLX.US$ rose 9% to lead leading technology stocks, $NVIDIA(NVDA.US$ rose nearly 3%, $Microsoft(MSFT.US$ and $Meta Platforms(META.US$ rose more than 2%.
China concept stocks also maintained rebound momentum during the session and outperformed the overall market.![]()
$Bilibili(BILI.US$ rose by more than 6%, $NetEase(NTES.US$ rose by more than 5%, $JD.com(JD.US$rose by more than 4%, and $Alibaba(BABA.US$ rose by more than 3%.
Technology stocks are considered a safe heaven.
On Wednesday, the Federal Reserve continued to raise interest rates by 25 basis points as scheduled, suggesting that the interest rate hike cycle is drawing to a close.
The dot plot released after the meeting showed that Fed officials expect at least one more 25 basis point rate hike this year.![]()
According to media surveys after the meeting, most investors believe that the Fed will raise interest rates this year and that monetary easing will not turn around this year.
Some commentators pointed out that in times of stress and economic uncertainty, many investors regard large technology companies as safe heaven, which can explain why blue-chip technology stocks became the leader of the rebound in US stocks on Thursday.![]()
China concept stocks are more resilient.
China concept stocks generally maintained a strong rebound throughout the day, easily outperforming the broader market.
$NASDAQ Golden Dragon China(.HXC.US$ rose more than 5% in early trading and closed up more than 2.9%. China Concept ETF $KraneShares CSI China Internet ETF(KWEB.US$ and $Invesco China Technology ETF(CQQQ.US$ closed up 4.8% and 4.2% respectively.
At the close, $Bilibili(BILI.US$ rose by more than 6%, $NetEase(NTES.US$ rose by more than 5%, $JD.com(JD.US$rose over 4%, $Alibaba(BABA.US$ rose over 3%, $PDD Holdings(PDD.US$ rose over 2%.
The firm, which oversees around $47 billion, has almost 60% of the portfolio of its Emerging Wealth Equity fund in Chinese shares.
The resiliency of Chinese markets is putting a floor on other emerging markets, Goldman Sachs Group Inc.’s emerging markets team wrote in a note Wednesday.
Currency and equity markets in Asia will be insulated from global volatility, partly because of better economic growth in China, according to Goldman.![]()
It was also notable that some of Chinese technology companies are starting to see their business outlooks improve, as demonstrated by Tencent Holdings Ltd., AAC Technologies Holdings Inc. and Kingsoft Corp.
Valuations on US-listed Chinese stocks in general look“very attractive,” said Fernandes.
The MSCI China Index, the benchmark used by GW&K, is trading at just 10 times projected earnings versus the 17.5 multiple commanded by the S&P 500.
“China is the only major economy where consumers can actually be more optimistic,” he said. “The value of that has only increased.”
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
noglyph : $Netflix (NFLX.US)$ is a compelling choice for investors! This global streaming service offers a wide range of special features, exclusive content, multiple genres, and personal favorites of both old and new releases. With the variety of different subscription plans to suit the viewers’ preferences, Netflix has great potential for long-term growth.