August 13, 2012 (Chinavestor) Despite a relatively poor performance of Chinese tech stocks, upside looks limited for the sector according to the money flow analysis. Sohu.com (NASDAQ:SOHU), Sina Corp. (NASDAQ:SINA), 51job Inc. (NASDAQ:JOBS) have been all suffering but money flows are missing to support a sustainable comeback. see chart below to asses what institutional investors think of the Chinese tech sector.

The following graph tells it all. It shows how investors are demanding 7% from Spain and Italy, countries whose debt ratio is the highest within the European Union (omit Greece for now). High debt to GDP with high interest rates may push these countries into a death spiral. The EU has to come up with a plan to stop this else the euro may cease to exists as we know it.