On CNBC, Jonathan Krane of KraneShares said Chinese internet stocks have gained a lot during the last two days, despite ongoing protests related to Covid-restrictions.
The government of China also responded to the protests, saying it will be easing restrictions, after a series of lockdowns in reaction to a recent surge in local cases. Krane sees China opening up going into the first quarter and also expects the internet sector to continue to “rise up.”
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Internet companies have also surpassed earnings expectations, with Alibaba Group Holding Limited BABA beating earnings estimates by around 15%.
Although the Chinese internet industry is down around 33% this year, it has gained around 44% since the lows of the previous month.
Krane sees a “lot of upside” for Chinese internet stocks when the economy opens up in 2023.
Image and article originally from www.benzinga.com. Read the original article here.