This Market Expert Sees 'Lot Of Upside' For China's Internet Stocks After Covid-Related Protests

On CNBC, Jonathan Krane of KraneShares said Chinese internet stocks have gained a lot during the last two days, despite ongoing protests related to Covid-restrictions.

The government of China also responded to the protests, saying it will be easing restrictions, after a series of lockdowns in reaction to a recent surge in local cases. Krane sees China opening up going into the first quarter and also expects the internet sector to continue to “rise up.”

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Internet companies have also surpassed earnings expectations, with Alibaba Group Holding Limited (NYSE: BABA) beating earnings estimates by around 15%.

Although the Chinese internet industry is down around 33% this year, it has gained around 44% since the lows of the previous month.

Krane sees a “lot of upside” for Chinese internet stocks when the economy opens up in 2023.