Tech giants in China sold off alongside their U.S. peers. How to play it

The latest tech sell-off underscores that it’s still a different game for investing in China versus the U.S. “The U.S. decline was primarily triggered by earnings miss[es] from some market leaders, but in China it was mainly sentiment spillover plus portfolio adjustment/rotation,” said Ding Wenjie, investment strategist for global capital investment at China Asset Management Co. “For the chip and AI sector, the long-term drivers of both domestic substitution and global AI computing demand remains intact,” she said, adding that, “besides chips, China’s electrical and grid equipment companies and materials sector will also benefit from the AI capex cycle.” Following…