Chinese Tech Stocks Are Back. Their Glory Days Aren’t.

Beaten-down tech shares are basking in some unexpected warmth from Beijing, but whether their businesses will heat back up is still unclear

Chinese tech stocks popular among U.S. investors have tumbled amid the country’s regulatory crackdown on technology firms. WSJ explains some of the new risks investors face when buying shares of companies like Didi or Tencent. Photo Composite: Michelle Inez SimonDon’t fight Beijing. That was the investment mantra behind the brutal, long-running selloff in Chinese technology stocks that began in late 2020.

In the longer term, some key uncertainties are still hanging over the market. Namely, whether a return to the heady growth and cash generation of the pre-crackdown days is really possible. Based on the evidence so far, the answer still seems likely to be no.

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