BEIJING: The massive selloff in US-listed shares of Chinese technology companies isn’t linked to their fundamentals and makes for a bigger buying opportunity, according to Citigroup Inc.
The brokerage reiterated buy ratings on Baidu Inc, Tencent Music Entertainment Group and Vipshop Holdings Ltd following what it called an “unfortunate dislocation” of their share prices.
“While we are not sure whether the huge volatility of share price movement of many technology stocks during the last few days could trigger more forced selling pressure or de-risk selling sentiment from other funds in the next few days, we do believe and are reassured that none of the sell-down is fundamental related, ” Citi analysts including Alicia Yap wrote in a note.
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