(Yicai Global) Sept. 7 -- Movements in shares of overseas-listed Chinese firms this year have reflected value corrections brought about by fundamentals and these companies may see shares sold off quickly in the near future, Shi Jialong, head of internet research at Nomura Securities Co., said at the brokerage's annual investment conference yesterday.

However, the sell-off is not related to fundamentals, it comes from short-term investors, as this segment has rallied substantially so far this year, Shi said. Fundamentals are actually very healthy for American Depositary Receipts (ADRs) and for most overseas-listed Chinese companies, and they are moving in a positive direction, he added.

ADRs, or overseas-listed Chinese shares, performed poorly overall in the fourth quarter last year after the yuan fell sharply and the market had an unclear outlook for the Chinese economy. This uncertainty prompted international investors to sell a large number of shares in those firms. ADRs did see a V-shaped recovery earlier in 2017, driven by both macro- and micro-catalysts, Shi said.

The yuan has been rising this year, an entirely different story to last year's movements and beating the expectations of macro-economists. A stronger yuan has helped boost international investors' confidence in China, affecting their sentiment toward overseas-listed Chinese stocks.

In a micro-economic sense, the vast majority of US-listed Chinese companies reported better-than-expected earnings for the first half, which helped drive a rally across the entire segment, Shi added.