Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Alibaba Group Holding (NYSE:BABA) and Tencent Holdings (OTC:TCEHY) continue to be the "benchmark" for Chinese technology stocks despite mounting state pressure on its big internet firms, Amber Hill Capital’s asset management director Jackson Wong told CNBC.
What Happened: Wong’s family and Amber Hill, who both own shares in the two companies, continue to remain bullish on the stalwarts, which they see together as "the benchmark” among China’s tech stocks.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Chinese tech stocks in Hong Kong have lagged the other sectors so far in 2021, according to the CNBC report, which adds that the top 10 constituents of the Hang Seng index did not include a single tech stock at the end of the first quarter.
The tech sector usually constitutes more than 42% of Hong Kong’s benchmark index. Its poor performance is attributed to rising bond yields, which hurts growth stocks such as technology as they reduce the relative value of earnings.
See also: How To Buy Alibaba Stock
Why It Matters: A growing number of Chinese tech shares that are also listed in the U.S. have taken a beating this year, amid fears that a new U.S. law could stop the trading of securities that do not comply with the Securities and Exchange Commission rules.
Investors are also spooked over China’s regulatory crackdown on the sector. Alibaba-owned Ant Group's IPO plans were shelved in 2020, which otherwise would have been the biggest IPO in history.
See Also: Ant Group Can Resume IPO Plans Once Problems Solved: Chinese Central Bank
Wong believes the profit outlook for two internet companies could take a hit due to the political headwinds and potential regulatory rules but expects “some kind of compromise” to be eventually reached on the regulatory front.
Price Action: Alibaba shares closed 1.11% lower at $224.36 on Monday, and those of Tencent were up 5.06% at $83.84, on Thursday.
Read Next: Why Pinduoduo Could Be 'Primary Beneficiary' Of Alibaba's China Regulatory Misfortunes
Photo courtesy: Alibaba
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.