Weibo Corporation's stock surged 5.04% during Wednesday's trading session, as part of a broader rally in Chinese tech firms and ADRs listed in the US. The soaring stock price can be attributed to the following reasons:
Investors are rebalancing their portfolios and rotating from US tech giants towards Chinese tech companies, which are trading at cheaper valuations. According to Melody Lai, an analyst at SPDB International, "Funds have been rotating from the US and India to China and Europe, where the positionings are low among global investors. China's markets have the valuation edge among the world's key stock markets. So foreign inflows are expected to continue in the near term."
Furthermore, there is growing optimism that the Chinese government will provide more support and resources to boost innovation and technological advancements amid the ongoing US-China rivalry. Premier Li Qiang recently called for more technological breakthroughs during a visit to the nation's largest state-owned telecoms operators, signaling the government's commitment to this sector.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.