Does it mean China's bigger tech companies may have broken even?


"Still, China’s richer tech valuations may have been a draw, said Sun Mengqi, an analyst at BOCOM International Holdings Co. “There could be a substantial valuation gap between the U.S. and China.”"

Source: http://fortune.com/2018/02/28/zhou-hongyi-net-worth-360-security-technology/

1 Answer 1


I took that quote to mean that China's richer tech valuations was also a factor that attracted the company to China. Earlier, the article talked about the main reason why the company moved to China: it wanted to align itself with China's national interest. But since relocating there, the company stock soared 500%.

So the analyst said: "Still, China's richer tech valuations may have been a draw." Aligning the company with China's national interest was a draw, but the high tech valuations was also a draw.

A draw can mean a force that attracts or compels you to do something:

The family moved to the suburbs from the city. Cheaper housing may have been a draw.

  • That's right. To be a draw means to attract.
    – Lambie
    Mar 1, 2018 at 12:50
  • The "valuations" refers to "financial valuations" typical of listed stocks, like price/earnings, EV/Ebitda, Book Value etc. Rich valuations are a negative because it means that stocks are expensive and likely to be sold (Shanghai index is lower) and the "valuation gap" refers to cheaper (lower valuations) US tech stocks.
    – user29952
    Mar 1, 2018 at 13:39

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