Former Morgan Stanley analyst who was bearish on Chinese tech stocks is now bullish.Alex Yao, Co-Head of TMT Research at Morgan Stanley Asia, recently stated in an interview: &#34;Considering the improvement in cost structure and easing competition, we believe there is still about 20% to 25% upside potential for Chinese tech stocks.&#34;Yao pointed out that overall, if the macroeconomic recovery continues, Chinese e-commerce companies will benefit from the cyclical recovery in consumption. Investors have been closely monitoring Chinese economic data, including consumption growth, inflation, and the development of the real estate market, to look for clues about the strength of the Chinese economic recovery.He said: &#34;Preliminary signs of stabilization in macroeconomic indicators are the main driving force behind the rebound of Chinese tech stocks, and a key factor affecting future stock price trends. Moreover, improvements in Chinese consumption and strong exports have also brought some encouragement to investors.&#34;Two years ago, Yao's bearish report sparked intense discussions.However, in April this year, Yao released a report stating that the Chinese tech industry has already bottomed out. Yao's change in view of the Chinese tech industry also signifies that some investors who once doubted Chinese tech stocks are beginning to change their views on the Chinese stock market.On Wednesday, with the convening of the Lujiazui Forum, leading stocks such as Tencent and Lenovo led a strong market rebound.Now, Yao emphasizes that if Chinese tech companies can maintain long-term profit growth of 10% or even 20%, people should reward those companies with sustainable profits

Two years ago, JPMorgan Chase analyst Alex Yao, who was bearish on Chinese technology stocks, recently stated that Chinese technology stocks still have about 20% to 25% upside potential, with the stable development of the macroeconomy being the key factor influencing stock prices

1. Core descriptive facts:
   - Morgan Stanley analyst Alex Yao, who previously held a bearish view on Chinese tech stocks, now believes there is a 20% to 25% upside potential for these stocks due to improved cost structures and easing competition.
   - Yao highlights that macroeconomic recovery, particularly in consumer spending, inflation, and real estate, will benefit Chinese tech stocks.
   - Yao's shift in perspective from bearish to bullish on the Chinese tech industry has also influenced other investors' views on the market.
2. Viewpoints and supporting logic:
   - Improved cost structures and reduced competition in the Chinese tech sector are seen as factors contributing to the potential upside in stock prices.
   - The potential for macroeconomic recovery, especially in consumer spending and strong exports, is expected to drive the rebound in Chinese tech stocks.
   - Yao emphasizes the importance of sustainable profit growth for Chinese tech companies and suggests rewarding those with consistent profitability.
   - The recent strong market rebound led by tech giants like Tencent and Lenovo at the Lujiazui Forum indicates growing investor confidence in the sector.
   - Yao's reassessment of the Chinese tech industry reflects a broader shift in sentiment among investors, signaling a more positive outlook on the market.
Overall, the article conveys the message that Alex Yao, a Morgan Stanley analyst, has shifted from a bearish to a bullish stance on Chinese tech stocks, citing factors such as improved cost structures, easing competition, and the potential for macroeconomic recovery driving the sector's growth.

JPMorgan Chase's Alex Yao: Chinese technology stocks can still rise by 20%-25%