Marvin Chen

China's tech platform companies (the 'tech eight', notably Alibaba and Tencent) are undergoing a valuable rotation. With the global AI selloff pressuring hardware names in the region, funds are rotating into China's unloved platform stocks, which are trading at historical low valuations, seeing sentiment recovery from moderating competitive AI spending, and a focus shift from build-at-all-costs to monetization.

Global portfolios are dangerously under-exposed to China's increasingly competitive and profitable tech/AI ecosystem. The world is becoming bipolar with two distinct tech systems, and investors currently have almost everything in the US-centric ecosystem. Chinese models are closing the performance gap while being significantly cheaper, offering massive growth potential and a compelling valuation entry point, making a core allocation to Chinese tech a strategic necessity.