Semiconductor chips, renewable energy and consumer-focused firms are becoming the new investment darlings in China, with investors believing they provide safety from the whirlwind of regulatory action currently pushing funds to overhaul portfolios, reports Reuters.
Money managers view months of crackdowns that have hammered shares in sectors from tutoring to big tech as part of a major push from China’s Communist Party leadership to pursue common prosperity at the expense of private-sector profit.
Yet as selling has wiped billions from the value of companies in the crosshairs, such as online giants Tencent and Alibaba, share prices of firms seen on the right side of reform have surged.