Are Chinese stocks a buy or a trap?
Currently, there is a lot of fear, uncertainty and doubt over the series of current and potential regulatory actions in China. Undoubtedly this presents a buying opportunity as many Chinese stocks are at a historically steep discount but until the situation clears up which can take a few years, I think it is risky for value investors to open positions in Chinese stocks. The fallout from the Evergrande saga is another threat on the horizon. Short term traders and options traders should be able to find opportunities to make profits regardless.
$DiDi Global (Delisted)(DIDI.US$ $PING AN INSURANCE(PNGAY.US$ $TAL Education(TAL.US$ $New Oriental(EDU.US$ $Bilibili(BILI.US$ $Baidu(BIDU.US$ $Weibo(WB.US$ $CHINA EVERGRANDE GROUP(EGRNF.US$ $PDD Holdings(PDD.US$ $JD.com(JD.US$ $Alibaba(BABA.US$ $NIO Inc(NIO.US$ $XPeng(XPEV.US$ $Meituan(ADR)(MPNGF.US$ $BYD Co.(BYDDF.US$
Disclaimer: The above is my personal opinion. It is not financial advice or a recommendation to invest. Please consult a financial advisor before making any investment decision.
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$DiDi Global (Delisted)(DIDI.US$ $PING AN INSURANCE(PNGAY.US$ $TAL Education(TAL.US$ $New Oriental(EDU.US$ $Bilibili(BILI.US$ $Baidu(BIDU.US$ $Weibo(WB.US$ $CHINA EVERGRANDE GROUP(EGRNF.US$ $PDD Holdings(PDD.US$ $JD.com(JD.US$ $Alibaba(BABA.US$ $NIO Inc(NIO.US$ $XPeng(XPEV.US$ $Meituan(ADR)(MPNGF.US$ $BYD Co.(BYDDF.US$
Disclaimer: The above is my personal opinion. It is not financial advice or a recommendation to invest. Please consult a financial advisor before making any investment decision.
Check out Long Term Investment - A Strategy For Growing Returns Without Sleepless Nights https://www.moomoo.com/community/feed/107495017873414?lang_code=2
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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doctorpot1 : ehhhhh it is not FUD it is real risk that investor should account for when investing. China company do not open their book to US to audit and now the new law by US is 3 years of no audit = delisting. China side also HAD asked chinese company to delist. Should not down play the risks as FUD because it is a law now. sure some may overreact cause their risk tolerant is low or don't know what is the implications. some will be happy and add more to the position as their risk tolerance is high or they know what will happen.
DadacaiOP doctorpot1: It appears your understanding of FUD is different from mine. To me, FUD has the likelihood of being realised so my use of FUD doesn’t mean there is no real risk.
doctorpot1 DadacaiOP: I see. when WSB uses FUD they usually refer to it as fake news that is trying to cause fear uncertainty and doubt. this is the definition of FUD in wiki.
Fear, uncertainty, and doubt (often shortened to FUD) is a propaganda tactic used in sales, marketing, public relations, politics, polling and cults. FUD is generally a strategy to influence perception by disseminating negative and dubious or false information and a manifestation of the appeal to fear.
DadacaiOP doctorpot1: Thanks for sharing. I guess that is the more popular usage but in the context of my article, I am simply using it to refer to negative setiments.