Chinese technological giants influence stock market: This is how the great Chinese technological giants can behave on the stock market, despite Huawei and Kikvision, according to this analytical firm:

• Frank Schwarz, global manager of MainFirst shares, explains that there is a chance that Chinese technological stocks will grow in the markets.
• One of the alternatives would be the destructive value observed "in Asian technology in areas such as e-commerce, electric cars, battery technology, semiconductor production, and modern payment methods such as Alipay," for an expert.
• The success of the technology sector may reside thanks to state support.

Even when we are in the middle of the storm, it may seem quite risky. With the United States standing at Huawei and calling on all US companies to abolish their relationship with Chinese technology on charges of espionage and intellectual property theft, investing in Asian technology may seem bold.

Chinese technological giants influence stock market

Moreover, if possible, when Huawei is not the only one in the hurricane's eyes. And that is the fact that the Chinese technology company Hikvision might be next to inflate the black list of companies to which the US country imposes restrictions on what it understands because it may be a technological and geopolitical threat to their interests.

The US administration's company is in the spotlight and the truth is that this has been noted in its market price, with a drop of more than 30% over its annual values.

Even so, the question many investors want to solve is whether there might be attraction in Asian technology stocks, whether commercial war can weigh the industry as a whole. As Frank Schwarz, the Global Equities manager at MainFirst, believes there is a chance that these securities will grow in the markets.

According to the expert, besides the well-known names of Alibaba and Tencent, there would be great potential "in Xiaomi, Ant Financial and Didi after his IPO." The newest and well-positioned players in the market are "Meituan Dianping food service specialist and Pinduoduo e-commerce company".

China's stock market did not say enough about its ability to reevaluate, despite commercial uncertainties, and there would be sectors with the ability to do well for the rest of the year, according to the expert.

One of the alternatives would be the destructive value observed in Asian technology in such areas as e-commerce, electric cars, battery technology, semiconductor production, and modern payment methods such as Alipay. In fact, Asia is already more advanced than the United States in this area.

Government support

And what is the reason for the success that the technology sector can have especially in the face of the rises that may come? For Schwarz, it is largely "state support". In this regard, the Chinese government has created the strategic plan "Made in China 2025" to work systematically to become a leader in areas such as technology, but also in others, such as energy.

The translation of this is that it is allowed to flourish "a new generation of entrepreneurs" comparable to that of Europe around 1870. Therefore, these technology firms may experience re-evaluations for the rest of the year.