According to investment bank China Renaissance, this year’s 30% drop in value in China’s big tech stocks, such as Alibaba, has made them “unbelievably cheap”. Its head of securities, Andrew Maynard, said the stock market appears to have bottomed out and most of the negative sentiment around regulations and the credit crunch has been priced into the market. Hong Kong’s Hang Seng Index and the CSI 300 index of major companies traded on the Shanghai and Shenzhen stock exchanges are both in bear markets, despite a strong rally over the past two weeks. The Hang Seng surged 8.7% in November on hopes that China could soon lift its strict Covid-19 restrictions. It comes after Beijing last week announced it was shortening its quarantine requirements. Investors are also expecting Beijing to refrain from making further regulatory changes that could be viewed negatively by the market. “We’ve seen one blow after another when it comes to that regulatory environment,” Maynard told CNBC on Friday, speaking from Hong Kong. “Most of the negatives have been absorbed by the market now and when we start to see slow but steady steps towards the concept of relative unlocking, the market will do well and appear to be doing so. .” According to Maynard, major global long-term investors, which dominate the Hong Kong stock market, now consider large-cap tech stocks such as Alibaba, Meituan, Tencent and JD.com to be “very undervalued. “. “They are extremely cheap compared to their global counterparts,” he added. Alibaba’s financial resilience was on display after it announced a $15 billion increase in its share buyback program despite China’s Covid control measures that have dented its sales. e-commerce giant in a competitive market. Its Hong Kong-traded shares ended the day up more than 2% on Friday, though New York-listed shares were in the red after gaining 7.8% the previous day. “We feel that Alibaba, especially with its acquisition announcement, is something that investors are starting to believe in, giving them a great opportunity against some of its peers globally.” Maynard said. The prolonged downturn in the Chinese stock market means that many investors have reallocated their portfolios out of the country and remain skeptical. “I’ve never seen levels this low.” Maynard, who oversees more than $5.8 billion in assets, said. “I still think there are a lot of investors who believe this is still an uninvestable environment.” However, Maynard warned that investors who ignore Chinese tech stocks could miss out on significant future gains. “There is no doubt that China being underweight will cost you dearly in the future,” he said. “And without a doubt, the biggest sector by percentage of which will be technology.”