China Tech Stocks Rebound on Dip Buying After Historic Rout

(Bloomberg) — Chinese tech stocks rebounded after a steep selloff over the past three sessions, as some investors spotted buying opportunities even as geopolitical and regulatory risks abound. 

The Tech Index climbed 6.3% in early trading on Wednesday, erasing some of the 22% decline since late last week that saw the gauge touch new lows every day. Bilibili (NASDAQ:) Inc. and GDS Holdings (NASDAQ:) Ltd. were the best performers, gaining around 15% each. The move tracks an advance overnight in its U.S.-listed counterparts. 

Investors are weighing cheap valuations following the historic rout against poor sentiment in the sector as regulatory risks linger, including a possible U.S. delisting of Chinese firms. Concerns related to Beijing’s ties with Russia and a lockdown in China’s tech hub Shenzhen are also adding to worries.

Five Charts Showing the Brutal Two-Day Selloff in China Stocks

JPMorgan Chase & Co. (NYSE:) earlier this week labeled some Chinese internet names as “uninvestable.” 

©2022 Bloomberg L.P.