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In recent weeks, the Chinese government has significantly increased the number of regulatory projects and measures concerning internet giants, and China's major technology stocks have lost 33.91% between 17 February and 31 August 2021. (1)
According to Sylvie Séjournet, portfolio manager of the Pictet-Digital fund, these events offer unique buying opportunities.
In summary
The recently introduced policies may temporarily affect the operations and finances of the digital sector. However, the risks remain moderate, the companies are financially strong and the impact on earnings is largely priced in by investors. The new social and regulatory policy framework seems positive for the long-term growth of the country and...
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