Rebuilding and Regaining Confidence in China Tech
Admittedly, many of the badly beaten down Chinese tech stocks seem to be great bargain buy based on low valuation. The key concern for investors will be over the recent wide ranging regulatory crackdown on data collection and data usage in the China tech sector that does not appear to subside anytime soon. When the smoke eventually clears, some of the higher quality Chinese tech stocks with solid fundamentals such as $Alibaba(BABA.US$, $JD.com(JD.US$ and $Tencent(TCEHY.US$ could go on to serve up sizeable wins for patient investors with long term investment horizon so long as these China stocks can continue to deliver strong corporate earnings under such intense regulatory pressures. The Chinese tech stocks are certainly not the cup of tea for the faint hearted. Those who have taken the plunge on recent bargain hunting or are tempted to buy on dips should bear in mind that investing in the Chinese tech stocks currently has all the making of a high-risk, high-reward game. The regulatory fears have crushed investors' confidence in the Chinese tech stocks. It will take time to rebuild and regain confidence, but over time, the China tech sector should recover nicely.
$Baidu(BIDU.US$
$Bilibili(BILI.US$
$DiDi Global (Delisted)(DIDI.US$
$Futu Holdings Ltd(FUTU.US$
$NetEase(NTES.US$
$PDD Holdings(PDD.US$
$UP Fintech(TIGR.US$
$Weibo(WB.US$
$Baidu(BIDU.US$
$Bilibili(BILI.US$
$DiDi Global (Delisted)(DIDI.US$
$Futu Holdings Ltd(FUTU.US$
$NetEase(NTES.US$
$PDD Holdings(PDD.US$
$UP Fintech(TIGR.US$
$Weibo(WB.US$
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Be Hopeful when others are Fearful
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Krel : I whole heartedly agree that confidence and iron hands may be necessary to reap rewards from investing in China stocks due to government intervention. It works both ways, the tech companies are given a free reign in the early days for their growth and now the government is setting up rules and regulations based regime to curb tech. Thus , I would actually see this as a consolidation as well as rising barriers to get into China tech space. I believe in the long run, the government of China would like to see the economy in better shape and thus the intervention should be viewed in a positive light rather than to punish the companies without good reasons. Cheers
Jeet Kune Do : Very good
HopeAlwaysOP Krel: Those who see long term value in China stocks will appreciate this.
102089245 : Great sharing here. I also believe China stocks will reward those who can hold long term.
102109868 : What a great friend I have in you : well written . Thank you
garay : Chinese tech stocks have faced high volatility due to government crackdown. I believe that these companies have strong fundamentals and would Appreciate tremendously in the future. For those who are more adventurous, it could provide for quick short term gains too. Definitely a must watch!
HopeAlwaysOP garay: It could pay well to ride through this high volatility to reap good returns for bravehearted investors.
PeaceLoving : China tech should still have legs to run further.
jasonleett : China stocks... Good time to invest
HuatLady : Yes I agree that by buying those shares in China the faint hearted investors will be very shaken if shares will to further dip. I reckon it will be a good investment on long term basis.
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