Amid rising concerns regarding delisting threats for U.S.-listed Chinese companies, Bernstein analysts have highlighted promising investment opportunities within the Hong Kong stock market. Investors are piling into Hong Kong-listed equities that mainland China is able to purchase through the “Southbound” stock connect. Analysts are today considering which tech companies will outlast increased geopolitical competition and state-level regulatory headwinds.
In late February, the White House announced a full-scale review of U.S. investments in Chinese companies. This decision sparked a whole new wave of panic over potential delistings. Scott Bessent, a representative from the U.S. Treasury, remarked during an April 9 interview with Fox Business that “Everything’s on the table,” indicating that the government may consider various measures impacting these companies.
In China, a series of regulatory clampdowns have delivered a staggering blow to gaming. This follows the Chinese government temporarily stopping new game approvals all while placing restrictions on minors by limiting gaming hours. Bernstein’s analysis uncovered a potentially promising trend from the first quarter of the year. This was mostly due to China approving 362 new games – almost back to 2020 levels – provided you work within already strict confines.
The Hang Seng Index, a benchmark for the performance of Hong Kong stocks, has made a significant comeback. Between 2024 when the team ended a four-year championship drought and 2025 when the squad began the season with strong momentum. Although it has since cooled its initial advances, the team is still up almost 7% on the year.
Bernstein analysts have set “overweight” recommendations on a number of major market players. Some analysts expect Tencent’s stock price will reach 640 Hong Kong dollars. This bullish forecast would represent an upside of almost 40% from Thursday’s closing price. Tencent’s inventive Miaosi ad creation platform comes as a major wind at this hope-yacht’s back. Moreover, that increase in ads on the platform’s burgeoning short videos feature (all hosted within its WeChat superapp) will further drive ad ROI.
Bernstein has rated NetEase at overweight. They left a price target of $125, meaning they see about 27% upside from Thursday’s close. The firm, unsurprisingly, is bullish on Alibaba and JD.com. Both firms have their shares listed in the U.S. and Hong Kong.
In addition to these tech giants, Meituan has shown robust forward guidance, predicting mid-20% growth in gross transaction value, surpassing previous quarter performance levels. That revenue growth is projected to be a little less than the growth seen in the last quarter. Meituan will earn 13.5 times its phantom earnings 3 years from now. This leaves the company trading at the very low end of its recent valuation range.
With the economy opening up, China announced a first-quarter gross domestic product growth rate of 5.4%—well above expectations. In light of increasing U.S. restrictions, analysts suggest that PDD might already be seeking strategies to mitigate potential business impacts.
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