China Tech Market Update

China tech names are showing technical signs of a breakout, supported by low positioning and a massive performance gap versus US indices. Key catalysts include upcoming earnings and a Trump-Xi meeting in mid-May.

Key Takeaways

• 1.China tech is showing signs of a turnaround with improving technicals (moving average crossovers) while positioning remains light.
• 2.A massive performance gap has formed between the US Nasdaq (NDX) and Chinese internet names, creating a potential catch-up trade.
• 3.Upcoming catalysts include Tencent/Alibaba earnings and a strategic meeting between Trump and Xi in mid-May.

Table of Contents

• Trying Again
• Waking up
• The laggard
• Trapped
• China internet
• Earnings kicking off
• The setup
• Upside convexity

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