Chinese (SSE) Tech Sector Analysis

Sector Valuation and Performance

Has the Chinese Tech Sector valuation changed over the past few years?

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Sun, 24 May 2026	CN¥31.1t	CN¥7.1t	CN¥248.3b	91.6x	125.1x	4.4x
Tue, 21 Apr 2026	CN¥26.1t	CN¥6.8t	CN¥209.9b	83.2x	124.2x	3.8x
Thu, 19 Mar 2026	CN¥23.7t	CN¥6.7t	CN¥198.6b	78.3x	119.2x	3.5x
Sat, 14 Feb 2026	CN¥24.1t	CN¥6.5t	CN¥187.6b	79.7x	128.3x	3.7x
Mon, 12 Jan 2026	CN¥24.0t	CN¥6.5t	CN¥185.3b	75.1x	129.7x	3.7x
Wed, 10 Dec 2025	CN¥21.9t	CN¥6.5t	CN¥185.0b	68.4x	118.5x	3.4x
Fri, 07 Nov 2025	CN¥21.9t	CN¥6.5t	CN¥183.0b	69.6x	119.4x	3.4x
Sun, 05 Oct 2025	CN¥21.6t	CN¥6.3t	CN¥155.5b	75.8x	138.6x	3.4x
Tue, 02 Sep 2025	CN¥20.7t	CN¥6.3t	CN¥155.4b	75.7x	133.2x	3.3x
Thu, 31 Jul 2025	CN¥16.5t	CN¥6.1t	CN¥139.8b	68.5x	118.3x	2.7x
Sat, 28 Jun 2025	CN¥15.0t	CN¥6.1t	CN¥138.8b	62.4x	107.9x	2.4x
Mon, 26 May 2025	CN¥13.9t	CN¥6.1t	CN¥139.6b	58.7x	99.4x	2.3x
Wed, 23 Apr 2025	CN¥13.9t	CN¥6.0t	CN¥167.7b	60.2x	83x	2.3x
Fri, 21 Mar 2025	CN¥15.8t	CN¥5.9t	CN¥168.6b	67.3x	93.9x	2.7x
Sun, 16 Feb 2025	CN¥15.6t	CN¥5.9t	CN¥175.4b	61.6x	88.7x	2.6x
Tue, 14 Jan 2025	CN¥13.4t	CN¥5.9t	CN¥178.7b	50.6x	75.3x	2.3x
Thu, 12 Dec 2024	CN¥15.1t	CN¥5.9t	CN¥175.2b	61.3x	86x	2.6x
Sat, 09 Nov 2024	CN¥15.3t	CN¥5.9t	CN¥175.4b	59.4x	87x	2.6x
Mon, 07 Oct 2024	CN¥13.1t	CN¥5.8t	CN¥194.7b	51.5x	67.1x	2.2x
Wed, 04 Sep 2024	CN¥10.3t	CN¥5.8t	CN¥194.6b	40.8x	53.1x	1.8x
Fri, 02 Aug 2024	CN¥11.2t	CN¥5.7t	CN¥226.3b	44.3x	49.4x	1.9x
Sun, 30 Jun 2024	CN¥11.2t	CN¥5.7t	CN¥225.3b	46.7x	49.8x	2x
Tue, 28 May 2024	CN¥11.4t	CN¥5.7t	CN¥225.0b	46.6x	50.6x	2x
Thu, 25 Apr 2024	CN¥11.3t	CN¥5.7t	CN¥284.8b	44.7x	39.7x	2x
Sat, 23 Mar 2024	CN¥12.5t	CN¥5.7t	CN¥270.4b	51.4x	46.1x	2.2x
Mon, 19 Feb 2024	CN¥10.5t	CN¥5.6t	CN¥270.6b	40x	38.7x	1.9x
Wed, 17 Jan 2024	CN¥11.6t	CN¥5.6t	CN¥263.9b	53.6x	44x	2.1x
Fri, 15 Dec 2023	CN¥12.9t	CN¥5.6t	CN¥263.2b	56.9x	49.2x	2.3x
Sun, 12 Nov 2023	CN¥13.2t	CN¥5.6t	CN¥264.0b	56.4x	49.9x	2.3x
Tue, 10 Oct 2023	CN¥13.1t	CN¥5.6t	CN¥275.3b	53x	47.5x	2.3x
Thu, 07 Sep 2023	CN¥13.6t	CN¥5.6t	CN¥275.2b	55x	49.3x	2.4x
Sat, 05 Aug 2023	CN¥14.0t	CN¥5.3t	CN¥279.1b	55.6x	50.2x	2.7x
Mon, 03 Jul 2023	CN¥14.5t	CN¥5.3t	CN¥279.8b	57.4x	51.9x	2.8x
Wed, 31 May 2023	CN¥14.1t	CN¥5.2t	CN¥278.0b	57x	50.7x	2.7x

Current Industry PE

Investors are optimistic on the Chinese Information Technology industry, and appear confident in long term growth rates.

The industry is trading at a PE ratio of 125x which is higher than its 3-year average PE of 79.8x.

The 3-year average PS ratio of 2.6x is lower than the industry's current PS ratio of 4.4x.

Past Earnings Growth

The earnings for companies in the Information Technology industry have declined 3.7% per year over the last three years.
Meanwhile revenues for these companies have grown 11% per year.
This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the Chinese Tech sector?


CN Market	-0.042%
Tech	3.89%
Electronic Equipment and Components	5.78%
Semiconductors	4.87%
Tech Hardware	4.30%
Software	0.046%
Communications	-0.95%
IT	-3.54%

Industry PE

Investors are most optimistic about the Software industry which is trading above its 3-year average PE ratio.

Analysts are expecting annual earnings growth of 33.7%, which is higher than its past year's earnings decline of 2.3% per year.

Investors are most pessimistic about the Electronic Equipment and Components industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 46.2x.

Forecasted Growth

Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 47% over the next 5 years.
This is better than its past earnings growth rate of 5.9% per year.

In contrast, the Tech Hardware industry is expected to see its earnings grow by 16% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company	Last Price	7D	1Y	Valuation
301666 DapuStor	CN¥888.99	30.7% +CN¥91.2b	n/a	PE29872.8x
603986 GigaDevice Semiconductor	CN¥468.74	24.9% +CN¥65.4b	306.2%	PE114.2x
688808 Semight Instruments	CN¥1.76k	50.0% +CN¥60.1b	n/a	PE659.5x
300408 Chaozhou Three-Circle (Group)Ltd	CN¥115.00	34.2% +CN¥56.2b	249.8%	PE76.6x
002371 NAURA Technology Group	CN¥669.00	13.0% +CN¥55.8b	112.6%	PE87x

Hikvision Announces Guanlan Encoding Ai-Powered Video Compression Technology

Hikvision has announced the launch of Guanlan Encoding, an AI-powered video compression technology that delivers 30%–50% average storage savings without compromising critical footage quality. Guanlan Encoding is built on the H.265 international standard and is powered by Hikvision's Guanlan Large-Scale AI Model. It extends Guanlan from video analytics into the encoding pipeline. In security deployments, especially those of substantial scale, Guanlan Encoding can halve HDD requirements and rack space while significantly reducing long-term power consumption – lowering total cost of ownership across the project lifecycle. Conventional codecs treat every pixel equally, forcing operators to choose between higher-definition imagery and more efficient storage. Guanlan Encoding eliminates that dilemma. It identifies key objects in a scene – such as people and vehicles – and preserves them at full clarity through precision Region of Interest (ROI) segmentation, while ultra-compressing redundant background data. The technology combines two complementary modes. Dynamic Sensing adapts bitrate allocation in real time to preserve detail in complex, fast-moving scenes. Static Optimization applies ultra-high compression to still or low-motion footage, reducing some frames to just a few dozen bytes. Together, they shift video encoding from a one-size-fits-all solution toward an intelligent, encode-on-demand approach. Internal comparative tests between conventional H.265 and Guanlan Encoding confirm consistent bitrate savings: Canteen (24 hours): 49% savings across full-day traffic fluctuations; Office park entrance (30 minutes): 42% savings during peak traffic; Corporate lobby (2 hours): 38% savings in a standard indoor environment; Busy commercial street (1 hour): 18% savings in a high-complexity, high-activity scene. Because Guanlan Encoding is built on H.265, it works seamlessly with existing H.265 decoders, Hikvision and third-party devices, and supports advanced AI analytics. Encoding format, frame rate, and resolution remain unchanged – making adoption straightforward for both new and existing projects. Guanlan Encoding is supported on Hikvision DeepinView(X)-Series Network and PTZ Cameras, Ultra-Series Cameras, Cameras with ColorVu 3.0, and DVRs, with continued expansion to more product lines. The technology is suited to a broad range of environments, from enterprise campuses and retail chains to public venues and critical facilities. By embedding AI directly into the codec, Guanlan Encoding marks a step toward a future where every byte of video is captured, compressed, and stored with intent. This is the shift from compression by pixel to compression by meaning.

Chinese (SSE) Tech Sector Analysis

Sector Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

Hikvision Announces Guanlan Encoding Ai-Powered Video Compression Technology

Price target increased by 9.3% to CN¥634

Investor sentiment improves as stock rises 34%

Now 21% undervalued

Foxconn Industrial Internet Co., Ltd., Annual General Meeting, Jun 09, 2026

DapuStor Corporation to Report Fiscal Year 2025 Results on May 21, 2026

Less than half of directors are independent

Executive Chairman recently sold CN¥596m worth of stock

Now 21% undervalued

New minor risk - Share price stability

Now 27% overvalued after recent price rise

Price target increased by 9.7% to CN¥2,017

Investor sentiment improves as stock rises 16%

Less than half of directors are independent

Consensus EPS estimates fall by 13%, revenue upgraded

Consensus EPS estimates increase by 20%