A top-performing Chinese hedge fund is buying the dip in Hong Kong-listed China technology stocks, saying valuations remain cheap even after their strong rally this year.
Shenzhen Huaan Hexin Private Investment Fund Management Co., which manages almost 6 billion yuan ($849 million), is adding such holdings after a 14% two-day slump in the Hang Seng Tech Index earlier this week. “Such a correction is more like a buying opportunity,” Yuan Wei, founder and fund manager, said in an interview on Wednesday. “If you compare to their fundamentals, the stocks remain very cheap.”