China tech stocks are rebounding
China tech stocks have been quietly recovering ever since May 2022, where Vice Premier Liu He said that the regulations were about to end.
The promise was kept as there were no new measures imposed.
Let's look at some China tech stocks recovery.
Meituan $MEITUAN-W(03690.HK$ is the 6th largest China stock by market cap and it has gained 100% from its low of $103.50.
It did better than the top two China tech companies - Tencent $TENCENT(00700.HK$ and Alibaba $BABA-SW(09988.HK$ only recovered 29% and 48% from their lows.
Tencent's relative poorer performance might be due to the continued resistance from the government - China recently approved 60 game titles and none were from Tencent.
Other China e-commerce stocks did well too - JD.com and Pinduoduo recovered 58% and 153% respectively.
Douyin's competitor, Kuaishou, saw its share price jumped by 68% from a month ago.
The China stocks listed in the US have been bullish lately too. Investors seemed to be shaking off the threat of delisting as the China authorities are working with the US counterparts to resolve the issue.
We saw heavily beaten down ADRs bouncing back strongly.
Social media stocks such as Bilibili, Huya and Joyy, were up 87%, 47% and 59% from their lows respectively.
Discount broker Futu jumped 116% from its low despite reporting a 41% decline in trading volume. Competitor Tiger Brokers was also up 86%.
Electric vehicle stocks were not shabby too, NIO, Xpeng and Li Auto recovered 67%, 44% and 76% from their lows.
We can go on and see that the recovery is across the board but you get the point.
Although the percentages look impressive, I think this rebound is still in its early days. If you look at their stock charts, the prices remained way below their all-time highs. There are a lot of ground to cover and resistances to break - it won't be easy as I believe many investors are waiting to sell.
Nonetheless, I think the rebound has finally come for China stocks after 1.5 years.
The promise was kept as there were no new measures imposed.
Let's look at some China tech stocks recovery.
Meituan $MEITUAN-W(03690.HK$ is the 6th largest China stock by market cap and it has gained 100% from its low of $103.50.
It did better than the top two China tech companies - Tencent $TENCENT(00700.HK$ and Alibaba $BABA-SW(09988.HK$ only recovered 29% and 48% from their lows.
Tencent's relative poorer performance might be due to the continued resistance from the government - China recently approved 60 game titles and none were from Tencent.
Other China e-commerce stocks did well too - JD.com and Pinduoduo recovered 58% and 153% respectively.
Douyin's competitor, Kuaishou, saw its share price jumped by 68% from a month ago.
The China stocks listed in the US have been bullish lately too. Investors seemed to be shaking off the threat of delisting as the China authorities are working with the US counterparts to resolve the issue.
We saw heavily beaten down ADRs bouncing back strongly.
Social media stocks such as Bilibili, Huya and Joyy, were up 87%, 47% and 59% from their lows respectively.
Discount broker Futu jumped 116% from its low despite reporting a 41% decline in trading volume. Competitor Tiger Brokers was also up 86%.
Electric vehicle stocks were not shabby too, NIO, Xpeng and Li Auto recovered 67%, 44% and 76% from their lows.
We can go on and see that the recovery is across the board but you get the point.
Although the percentages look impressive, I think this rebound is still in its early days. If you look at their stock charts, the prices remained way below their all-time highs. There are a lot of ground to cover and resistances to break - it won't be easy as I believe many investors are waiting to sell.
Nonetheless, I think the rebound has finally come for China stocks after 1.5 years.
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whqqq : Thats new to me, thanks for your sharing
BL 88 : This rebound in China Stocks will be a short-lived. CCP will intervene and to suppress their own China Tech Moguls.
So long as Xi Jinping is at the helm, the risk of the tech stocks come crashing down will be great.
Good luck to those investors who started to feel conviction in China Stocks.....
Macdonell J BL 88: The grape must be very sour!
Johnnie Worker BL 88: No worry, I’m gonna out before it goes down
1994CM BL 88: The Entire Chinese Communist Party is always destroying their own economy & disruption of the complex Global supply chain.
BL 88 1994CM: I have dealt China GLC, they are all corrupted and arrogant. CCP has brainwashed all GLC leaders when they are in foreign country they must always advocate CCP spirit and culture.
101814969 BL 88: Are you in the right forum? We're investing here, not some crap political comments which you should know where to go to. Adiou!