Cathie Wood said valuations of Chinese stocks will likely remain depressed for a while. She is not shutting the door on them just yet. “So is China now uninvestable?” the head of Ark Investment Management said on a webinar hosted by the firm Tuesday. “Well, I would say in any of the areas that we are looking at right now, the multiple structure, the valuation structure of those companies is down and probably not going to come back very quickly, may even go down more.” “I’m sure we’re going to find some very interesting companies in the innovation space, and so we’re going to keep an open mind there,” she added. Wood dumped Chinese stocks in July as Beijing’s clampdown on sectors ranging from education to technology wiped out about US$1 trillion off shares listed on the mainland, Hong Kong and the US last month. Her largest fund, the ARK Innovation ETF, had less than 0.2 per cent of its US$23 billion in assets invested in Chinese companies as of August 9, compared with 8 per cent in February, according to data compiled by Bloomberg. The ETF sold US$1.66 billion worth of stakes in the American depositary shares of companies including Tencent Holdings, its games publishing unit Huya, internet search engine Baidu and real estate platform operator KE Holdings, also known as Beike, according to its filing on July 29. There are already signs investors were attempting to find a bottom. Chinese internet stocks rallied in Hong Kong on Tuesday after some brokers started to turn optimistic on the sector. The city’s tech barometer surged 2.5 per cent , lifting the market’s benchmark Hang Seng Index to its best gain this month. Investors in Hong Kong and China have turned more constructive towards the internet sector following the recent sell-off, Nomura analysts led by Shi Jialong wrote in a note to clients on Monday, saying most of the internet leaders should emerge stronger from the regulatory storm.