MOSCOW, 23 Nov — PRIME. Shares of a number of major Chinese technology companies, including some of the most affected securities in the global stock market this year, in November, shifted to growth, while shares of the American tech giants falter, the article says DOw Jones.
Shares of Chinese Internet giant Tencent Holdings Ltd., titanium e-Commerce Alibaba Group Holding Ltd. and smartphone maker Xiaomi Corp. in November, grow as opposed to papers the so-called FAANG. It includes the shares of five major technology companies: Facebook Inc., Apple
Inc., Amazon.com Inc. Netflix Inc. and Google Inc. This month their capitalization fell by hundreds of billions of dollars compared to the beginning of October. Microsoft Shares
Corp., the second-largest U.S. company by market value, also fell.
Investors say that the rating of the securities of Chinese companies that had been declining for most of the year, now looks attractive.
Shares of Tencent, which last week published the results exceeded expectations in November, gained 9.1 percent. To them November is likely to be the best month in terms of growth since January. Alibaba shares have risen by 5%, show the best monthly growth since may. Paper Xiaomi this month jumped 19%. Earlier in November, the company announced that 3rd quarter profit due to increased sales of premium smartphones.
Paper American companies to some extent just trying to catch up with their Asian competitors, while investors are reviewing excessive valuation and growth expectations. “Some technology companies in the U.S. is overvalued, while in China, some of these companies are undervalued,” said Mr. Thomas Poullaouec, head of the Asian division of the diversified assets in T. Rowe Price.
In 2018 the majority of the shares of major U.S. technology firms the results were better than their Chinese competitors. Apple Amazon.com and Netflix demonstrate growth from the beginning of the year. Paper Alphabet overall traded neutral, and paper Facebook
went into a deep disadvantage.
For comparison, Tencent with the beginning of 2018, has lost more than a quarter of its market capitalization, the capitalization of Alibaba since the beginning of the year fell by 13% and the market value of Xiaomi since the July IPO has decreased by 14%.
However, promotions are not all Chinese technology companies grow in November. Paper giant search engine Baidu Inc. in November fell by 3.2% since the beginning of the year fell by more than 20%. Paper the Internet retailer JD.com Inc. this week reached a record low after its revenue for the 3rd quarter failed to meet expectations. In addition, questions about its CEO Liu Zandona, which this year was arrested in Memphis on suspicion of rape. This year, the market capitalization of JD was reduced by more than half.
Andrew Swan, head of Asian shares and global emerging markets at BlackRock, still be wary of the Chinese technology companies in connection with the slowdown in profit growth and tighter regulation.
“These companies were associated very high expectations, he says. — It so happened that in the sector, who for many years grew with the rate of 30%, stopped the growth of profits. I think this situation will continue for some time”.
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