China Tech Stocks Outlook Improves After Yearlong $1.5 Trillion Rout

(Bloomberg) — A yearlong slide in Chinese technology stocks that wiped out $1.5 trillion in market value may finally be ending as investors look beyond regulatory hurdles to focus on valuations.

Just 12 months ago, a rally that pushed Hong Kong’s Hang Seng Tech Index to the highest level since its July 2020 inception started to unravel as traders raced to the exit over sky-high valuations and Beijing’s sweeping crackdown on private enterprise.