(Bloomberg) -- The biggest casualty of this year’s rout in Chinese technology stocks has rebounded 31% in the past five days, leading a recovery in the sector thanks to cheap valuations and bets that the worst of Beijing’s regulatory crackdown is over.

Kuaishou Technology, the TikTok rival that runs a video streaming app on the mainland, has surged almost four times more than the Hang Seng Tech Index since Oct. 18. 

It’s now just 6% away from its February initial public offer price after a wild ride that saw the stock more than double within weeks of listing in Hong Kong before plunging 84% to an August low -- the widest peak-to-trough slump among global IPOs this year.

“For Kuaishou, its advertising sales growth trajectory remains quite encouraging even amid the regulatory crackdown,” said Bloomberg Intelligence analyst Matthew Kanterman. This looks to be driving some investors to call the bottom for the shares, he added. 

Still, Kanterman cautioned that Kuaishou and the broader sector will remain vulnerable to the risk of negative headlines for some time to come.

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