Chinese technology stocks may have stopped falling? Overseas institutions: the pullback brings a good buying opportunity.

After nearly six weeks of strong performance, Chinese technology stocks experienced some pullback in the first two days of this week. On Monday and Tuesday, the Hang Seng Tech Index fell by 1.19% and 1.57%, respectively, with the index dropping nearly 4% at one point on Tuesday morning. In the US stock market, the Nasdaq Golden Dragon China Index dropped by 5.24% on Monday, with leading Chinese tech giants like Alibaba facing heavy declines. Many strategists mentioned that the decline in Chinese tech stocks this week was due to a need for some profit-taking and also the impact of the latest restrictions imposed by Trump. On February 21st, the White House website released a memorandum on "America First" investment policy, announcing adjustments to US investment policies, focusing on further restricting investment with China. However, many overseas institutional strategists believe that China's capital expenditure on artificial intelligence is still expanding, and they continue to be optimistic about the prospects of Chinese tech stocks. In their view, the pullback in Chinese tech stocks this week may actually present a good buying opportunity. Here are some views from overseas strategists: Linda Lam, Head of Stock Consultation Department of North Asia at Swiss private bank UBP: "The steep fall in Alibaba reminds us that geopolitical risks will not disappear soon. However, despite the restrictions from the US, DeepSeek has indeed provided a credible reason for a long-term re-rating of Chinese tech companies. The next question for investors is how much profit potential DeepSeek can bring." Kok Hoong Wong, Head of Sales Trading and Execution at Maybank Securities based in Malaysia: "Some profit-taking in Chinese tech stocks is inevitable and may be considered healthy. "In the short term, traders may take profit due to the impact of Trump's tariff remarks and recent measures against China by the US. "Looking ahead, at least for the rest of this year, this theme will continue, and we believe foreign funds will buy on dips." Charu Chanana, Chief Investment Strategist at Sheng Bao Capital Markets: "Given the outperformance of Chinese AI-related stocks so far this year, uncertainty stemming from Trump's executive order may lead to some profit-taking. "If Trump's order comes into effect, the AI supply chain may be affected. And if Trump does not directly implement the order but uses it as leverage and a bargaining tool, the fundamental shift in the momentum of AI will still be a key market driver with the right policy support." Jason Chan, Senior Investment Strategist at Bank of E Asia: Although offshore markets are starting to digest the negative impact of the latest actions by the Trump administration, "regarding the latest news, I don't think it will have a significant actual impact on US funds buying Chinese listed companies, as the memorandum mainly focuses on restrictions on direct investments, not banning US funds from investing in Chinese stocks." This article is reprinted from "Cailianshe", GMTEight Editor: Lifu.