• Four out of the 10 best-performing stocks on the CSI 300 in 2019 were tech companies
• Tech stocks already outperforming consumer companies, last year’s best performers

Traders are betting that a strong momentum in Chinese technology stocks – the most expensive sector following a buying spree last year – will continue into 2020.
Companies ranging from semiconductor manufacturers to electronics makers will continue to be supported by a government push for self-reliance, as well as a boom prompted by the transition to fifth-generation wireless networks, according to investors such as Xufunds Investment Management and Jingxi Investment Management. A gauge of mainland China-traded technology companies was trading at 4.9 times book values on average after a 60 per cent gain last year, making it the priciest among 10 industry groups of the CSI 300 Index, according to Bloomberg.
Out of the 10 best-performing stocks on the CSI 300 in 2019, four were technology companies.
Will Semiconductor, a supplier of integrated circuit products for telecommunications and electronics for cars, surged 390 per cent last year, taking the No. 1 spot. Luxshare Precision Industry and GoerTek, suppliers of consumer electronics products to giants such as Apple, and GigaDevice Semiconductor, which makes flash chips, jumped by at least 193 per cent.
“I am still optimistic about the sector, which is supposed to have further room for upside to run,” said Wang Chen, a Shanghai-based partner at Xufunds Investment. “Demand isn’t a problem, as the Chinese government is pushing ahead with the move to replace imported hi-tech products with home-made ones, and 5G construction is really in full swing. So these factors are really benefiting the sector, and valuations are not going to contract. The best growth stocks will still come from the technology sector this year.”