(Bloomberg) — A growing chorus of traders are saying that the bottom for China’s technology stocks may finally be here, bolstered by a report Thursday that China may allow Ant Group Co. to revive its initial public offering.
Chinese financial regulators have started early stage discussions on the listing, people familiar with the matter told Bloomberg.
READ: Alibaba Shares Jump as China Considers Reviving Ant Group IPO
Here’s what market participants are saying:
Global CIO Office (Gary Dugan)
- “We were only saying a few days ago that if Ant was rehabilitated it would mark a major positive. This, in a sense, was where the trouble started”
- “This would be sufficient” to mark the bottom
- “If true, it would be very good news and a major potential turning point for the China tech sector and broader Chinese markets”
- It would suggest a major shift of government policy that is pro markets
Bloomberg Intelligence (Marvin Chen)
- It is a sign that regulators are following through on their pledge to end the crackdown on tech platforms, which will continue to improve sentiment on the sector
- “Potential revival of the Ant IPO may also help support financial markets in the region as fund-raising activity has dried up this year”
Kamet Capital Partners (Kerry Goh)
- “We now firmly believe that the worst is past us for China tech in particular from a regulatory point of view, but the impact from the economic slowdown, we don’t know yet”
- The high frequency of positive news this week seems very coordinated and gives the clear signal that the regulatory stresses of the sector are over
- The next thing China stock traders would like to see is the property-sector overhang removed for the economy
UOB Kay Hian (Steven Leung)
- The report could be “big good news” to market
- It “may be considered as the official end of regulatory risk” as the crackdown started with the freezing of Ant’s IPO
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