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Investors chase commodity stocks

By Meng Fanbin | China Daily | Updated: 2017-07-31 07:50

Small tech shares out of favor due to fear of tighter regulation, high PE ratio and hopes of rise in IPOs

A rise in IPOs, expectations of stricter policy and high PE ratio are likely to hurt stocks of small technology companies as both retail and institutional investors in the equity market are increasingly favoring shares in commodity companies.

Shares in small companies in IT, biotech and new material sectors that have been in a tailspin of late, are expected to slump further, while coal, steel and nonferrous metal stocks are tipped to coast on the respective companies' brightening business performance.

Investors chase commodity stocks

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