(Yicai Global) Aug. 8 -- While US technology stocks have rallied, many overseas-listed Chinese firms have outpaced them, the Securities Times reported today.
The US stock market boom has long been dominated by large caps, including tech firms such as Facebook Inc. [NASDAQ:FB], Amazon.com Inc. [NASDAQ:AMZN], Netflix Inc. [NASDAQ:NFLX], Alphabet Inc. [NASDAQ:GOOGL] and Apple Inc. [NASDAQ:AAPL].
Despite their gains, US tech securities failed to keep up with Chinese tech giants that listed abroad. Baidu Inc.'s [NASDAQ:BIDU] artificial intelligence strategy has helped push its shares up nearly 37 percent this year, while Google parent Alphabet has climbed about 20 percent.
Shares in e-commerce titan Alibaba Group Holding Ltd. [NYSE:BABA] have increased almost 75 percent this year, more than double the rise in Amazon's shares. Social media group Weibo Corp. [NASDAQ:WB] has gained more than 90 percent since earlier this year, while Facebook has gone up about 47 percent.
"Since investors have pumped a large amount of money into leading stocks, US tech stocks have rallied, but they are still underperforming their peers across the Pacific," a senior manager at online broker E-Trade Financial Corp. [NASDAQ:ETFC] said.
The ascent of overseas-listed Chinese firms is partly driven by their cheap valuation, foreign media reported. Higher valuation is justifiable for enterprises like Tencent and Alibaba that are still enjoying high profit growth, despite their large size. As the US market and its tech stocks strengthened, investors' style changed. Large-cap overseas-listed Chinese stocks with growth potential and earnings support are set to gain traction and value stocks will become more attractive.