World’s Worst Tech Stock Becomes China’s Hottest in Five Months —Bloomberg
What happened: Lenovo’s shares rose 42 percent since June when the company’s stock was dropped from Hong Kong’s benchmark stock gauge Hang Seng. Since 2013 when Lenovo was added to Hang Seng until its removal, the company’s stocks plunged 57 percent losing $5.9 billion in value. Today, Lenovo is outperforming every other Chinese tech stock.
Why it’s important: The miraculous rise shows that Lenovo is doing something right with its PCs and laptops. Recently, the company admitted that its smartphone business has sunk to the bottom despite acquiring Motorola. However, the rise also reflects the slowdown of other Chinese tech stocks including Tencent and companies hit by the US-China trade war. Lenovo has been trying to avoid the stigma of Chinese companies which Huawei and ZTE are facing by describing itself as a global company. This, however, did attract some scrutiny in China.