Despite Beijing’s current regulatory crackdown on internet giants in an effort to rein in their monopolistic behavior, there’s plenty of optimism surrounding these companies’ long-term growth prospects. As such, Wall Street expects leading Chinese stocks Alibaba (NYSE:BABA), Baidu (NASDAQ:BIDU), and HUYA (HUYA) to rally considerably. Underpinned by strong economic and consumption growth, these companies are poised to soar in the coming months. So, let’s take a closer look at these names.Even though Beijing’s ‘crackdown’ on major tech companies has caused a decline in their stocks recently, the industry holds immense potential. According to JPMorgan (NYSE:JPM) Asset Management, China’s technology stocks are attractive despite near-term uncertainty related to the regulatory crackdown.
Because the government is potentially curtailing these companies’ most lucrative businesses, such as fintech for e-commerce, they are now investing heavily in new areas of growth, such as cloud computing, autonomous driving and artificial intelligence. Although the chances of the U.S. Securities and Exchange Commission delisting Chinese stocks remain high, the threat does not seem to be impeding the companies’ business operations nor investor enthusiasm for the names.
Furthermore, because China’s economic recovery is happening faster than other major economies, investors are extremely bullish on Chinese stocks. Given this backdrop, Wall Street analysts predict financially-solid Chinese stocks Alibaba Group Holding Limited (BABA), Baidu, Inc. (BIDU), and HUYA Inc. (HUYA) will advance more than 40% in the near term.