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Tech stocks capture China’s elderly retail investors amid faith in nation’s tech sector
State support in the sector and frustration over slow gains in blue chip stocks has elderly Chinese changing returns in technology
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Emma Main Shanghai
Technology stocks have become the new darlings of China’s retail investors who are betting their savings on chipmakers and artificial intelligence (AI) developers amid belief in the country’s technology ascendancy.
“Foam is the best bit of a beer,” Fang Yan’an, a veteran investor in his late 70s, told the SCMP, referring to his tactic of chasing the rally of some technology companies.
“Our government has ramped up support for technological development over the past few years, and so have many other nations,” Fang said. “Since technology is now crucial for global competition, I tend to believe in the AI industry, and I’m prepared to hold the shares through a long-haul journey.”
Higher earnings could support the high price of technology stocks as more commercial products are developed from research, he added.
Fang, who has more than 30 years of experience in trading A-shares on the Shanghai and Shenzhen stock exchanges, is among millions of Chinese retail investors who have faith in technology stocks, hoping to strike it rich during volatile rides.
The sector has staged a blistering rally over the past two years, with prices of several leading firms skyrocketing more than tenfold, and it remains hotly debated whether technology stocks on the A-share market are in a bubble.
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