Is China's Tech About to Explode Like My Photon Blasts?!

Back to the Good Old Days?

Alright Squad! Captain Marvel here diving into the financial cosmos! Seems like Bernstein those brainy folks who know their Quasar from their Kree are eyeing Chinese internet tech stocks like they're Yon Rogg's escape pod: ripe for the taking! They're saying things are looking a lot like the dark days of Covid 19. 'Fade sentiment extremes,' they preach. Which if you translate that to Carol Danvers speak means: 'Don't panic! Buy the dip!' Remember even I had my Binary moments. Everyone has setbacks!

Regulatory Rollercoaster: From China to...The U.S.?!

Remember when those pesky Kree tried to control everything? China's been through its own regulatory rodeo. But guess what? Bernstein's saying the regulatory winds might be shifting. They pointed out that valuation multiples have mostly fallen back to the lows seen in the 2021 to 2023 period and as Beijing ramped up its stimulus announcements in recent months and signaled more private sector support — especially with the advent of DeepSeek's artificial intelligence breakthrough — Hong Kong's Hang Seng Index broke a four year losing streak in 2024 and kicked off 2025 with a strong start. Ironically they think the regulatory vibes in the good ol' U.S.A. are starting to feel a bit like China back in '21! Who would have guessed? Talk about a cosmic turnaround!

Tencent and the Rise of Domestic Dominance

Alright focus people! Bernstein's got their eye on Tencent. Apparently video games are chill even with trade wars raging and digital ads are BOOMING because Chinese merchants are selling stuff at home now. This is basically like finding out Goose can teleport – totally unexpected but definitely awesome! Bottom line for Tencent that sounds like more power more glory... and maybe a celebratory shawarma afterward.

Trade Wars and Delisting Drama!

Of course it's not all sunshine and quantum energy blasts. U.S. China trade tensions are still simmering and there's that whole 'will they won't they delist' drama hanging over Chinese companies. It's like trying to defuse a Skrull bomb – stressful! The Hang Seng might have curtailed its earlier 2025 gains and is up nearly 7% this year as of Thursday's close but hey at least it's still up. Every small victory is a win!

Bernstein's Bet: Tencent and NetEase to the Rescue!

So who's Bernstein betting on? Tencent is their top pick trading at a steal for 2026 earnings. They're calling for a nearly 40% upside! That's like finding out you have even MORE powers you didn't know about! They also love NetEase the gaming giants for 27% upside. Also China approved 362 new games in the first quarter almost recovering to 2020 levels. Someone get me a joystick I'm going in!

The Future is...Uncertain but Promising!

GDP growth is better than expected but some economists are still cutting targets. Bernstein's pretty chill about it though. They're basically saying 'Yeah there's some turbulence but it's not the end of the universe.' They're also bullish on Meituan and keeping an eye on Alibaba JD.com and even Temu's parent PDD. It's a risky game sure but as I always say 'Higher further faster!' And with a little luck and a lot of photon blasts we might just come out on top!