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There’s a ‘game of thrones’ in AI, but these China tech giants offer real value, tech veteran says

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China’s tech giants may be reeling from the regulatory clampdowns imposed by the government, but they still have “a lot of value,” according to veteran analyst Dan Ives. “I think [for] China tech, there’s a lot of value there when you look at Baidu , JD , Tencent and others. But there is a game of thrones that’s going on, especially in AI in this cold tech war,” the managing director and senior equity research analyst at Wedbush Securities told CNBC’s ” Squawk Box Asia ” on Thursday. Because of China’s regulatory restrictions, more institutional investors in Asia are focusing on U.S. tech instead, Ives added. China’s crackdown on its large tech companies began in 2020 and was sparked by concerns that its major internet companies were becoming too powerful. That wiped out more than a trillion dollars from the country’s biggest tech companies. But when asked if the regulatory restrictions are expected to peak, Ives replied that the “peak is in the rearview mirror.” “So, I think we’ve gone through the worst of it, which is why I think more investors are nibbling in terms of Chinese tech and you cannot dispute the technology that’s coming out from there,” Ives added. Others have also sounded a positive note on the Chinese tech giants of late. British investment bank HSBC has given “buy” ratings to Baidu, JD and Tencent. It has a target price of $168 for Baidu — giving it around 56% potential upside from its Oct. 25 close — and $38 for JD.com, or around 50% upside. HSBC has a 425 Hong Kong dollar ($54.34) price target on Tencent, giving it an upside of around 48%. Goldman Sachs , too, has a buy call on Baidu at a 12-month price target of $181 — giving it an upside of around 68% and 423 Hong Kong dollars ($54) for Tencent, or around 47% upside. — CNBC’s Arjun Kharpal contributed to this report.

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