China Tech's Wild Ride A Dragon's Perspective

• Chinese tech stocks experience volatility due to sentiment spillover and portfolio adjustments, unlike the US.
• Despite short-term losses, mainland investors are buying into top Hong Kong stocks like Tencent and Alibaba.
• Valuations in China's tech sector, especially in AI, are considered attractive compared to global peers.
• Chinese companies focus more on consumer-facing AI applications, driving local chip and infrastructure development.

East Meets West A Different Kind of Kung Fu

Greetings, everyone. Jackie Chan here. I've traded punches all over the world, from the streets of Hong Kong to the backlots of Hollywood. But this tech market? It's a whole different kind of action flick. This report says US tech stocks took a tumble because of missed earnings. That's like botching a stunt but in China, it's more about the feeling, the vibe, you know? Sentiment. It's like when the audience *thinks* I'm going to fall off a building, even if I'm perfectly safe.

Chips, Grids and AI Oh My

Now, this Ding Wenjie from China Asset Management knows her stuff. She says the long-term drivers for chips and AI are still there. And it's not just chips. Electrical, grid equipment, even materials are gonna benefit from this AI spending spree. It's like when I'm fighting ten guys at once I'm not just using my fists, I'm using everything I can get my hands on ladders, chairs, even a baby carriage if I have to. Speaking of fights, you should check out Hall of Fame Drama Is It Really About Football or Is It Personal a drama that might not involve actual punches, but is certainly full of its own kind of clash.

Hong Kong's Bear Hug

So, Hong Kong's tech giants are getting hit hard. Hua Hong Semiconductor, SMIC, Kuaishou, Tencent, Alibaba all taking a beating. It's like watching a perfectly choreographed fight scene go wrong. Everyone's on the floor. But here's the funny thing Mainland investors are still piling into Tencent and Alibaba. They're seeing something others aren't. It's like when I see a chance to use a prop in a fight, even if no one else does.

Valuation Vacation

This Brian Tycangco from Stansberry Research says China's markets are just starting their bull run. He says valuations haven't had a chance to get crazy yet. It's like saying I'm just starting my warm-up before a big fight scene. The KraneShares CSI China Internet ETF is at 16 times its price-to-earnings ratio. The KraneShares SSE STAR Market 50 Index ETF is at 45. That's not too high, considering how fast AI is growing in China. Fast like me on a bicycle trying to outrun a gang of bad guys.

Robotaxis and the Future is Now

And get this Pony.AI, the robotaxi company, is teaming up with chip maker Moore Threads. They're building autonomous driving technology. It's like when I finally get to use all those gadgets Q Branch gives James Bond. The future is here, and it's driving itself. Remember, I always say, 'Don't let anyone tell you can't do something.' These companies are proving that every day.

2026 and Beyond: A Crystal Ball with a Few Scratches

Raffles Family Office is looking ahead to 2026. They say China and Hong Kong are starting from a place of low expectations. But they're still positive on the digital economy and AI. They're even increasing their exposure to China and Hong Kong stocks. It's like betting on the underdog. You never know, they might just pull off the upset. So, keep your eyes open, folks. This tech market is full of surprises, just like one of my movies. And always remember, 'Kung fu is not just about fighting it's about doing your best.' Even in investing.