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As China Tech Stocks Roar Back, a New Normal Will Test Upside

Chinese tech stocks are suddenly back in Wall Street’s favor, but that doesn’t mean investors and analysts expect the sector to regain its former glory any time soon — if ever.

From Goldman Sachs Group Inc. to Morgan Stanley, a growing number of strategists have made bullish calls following President Xi Jinping’s Covid Zero exit and vows to end a crackdown on the sector. The shifts have spurred a 60% rally in the Hang Seng Tech Index since an October trough, a world-beating feat even though the gauge’s market value is still half of its February 2021 peak. 

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