Cathie Wood Sees Growth Potential in Chinese Tech Stocks, Despite the Recent Price Plunge

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“I’m very impressed that China allows Tesla into the country without a local manufacturer. Country officials seek to have electric vehicles proliferate throughout China,” she said.

In the last weeks, China’s tech stocks plunged. According to data from the Hang Seng Tech Index, Alibaba, Tencent, and Foxconn were performing very badly. Chinese tech lost more than 3% versus a 1.5% increase in tech-heavy Nasdaq100. The reason behind the plunge — according to some analysts— is the regulatory and legal impact.

“the tension between the United States and China are “Cold Tech War” which resulted in major risk factors”. Wedbush analyst Dan Ives said on Monday.

Wood’s Ark Invest published a note this week saying “Chinese technology companies are caught in political crosscurrents”, referring to the developments which have been causing stocks to crash. Ark Invest believes they will only cause “short-term turmoil”. And said, “policies might accelerate or hinder the pace of innovation for a time. But we believe self-preservation probably will bring policymakers back to both tables.”