Chinese stocks and ADRs: The upside is here
$BABA-SW(09988.HK$ $JD.com(JD.US$ $Futu Holdings Ltd(FUTU.US$ $PDD Holdings(PDD.US$ $BIDU-SW(09888.HK$
After more than a year of dark clouds, we are seeing silver linings in the horizon. The storm generated by the many FUDs have more or less abated. Relative to US and many other countries, China will be the first to come out of the current depressed economic cycles. Positive factors includes:
1. Russian-Ukraine war: This is causing unprecedented price increase in commodities and oil prices. China is perhaps the biggest beneficiary from this conflict; being mitigated to a great extent by having the privilege of buying cheap oil and commodities from Russia, following their “forever Friendship” MOU.
2. Unlike the US and most other countries, China has the luxury to ease monetary measures to support her economy.
3. CCP has vowed to support their local corporations as investors began to understand why those regulatory changes of the past one year are important for the continued stability and development of this most populated country in the world. A stable country is good for investment and is what big foreign corporations look for. For a government that has eliminated abject poverty in less than one generation, I believed they know what they are doing; no matter how painful those regulatory changes may cause in the short term.
In view of the above,. I suspect many large funds are returning to Chinese stocks because of their attractive valuations. My take is that many overpriced US stocks will continue to correct as Chinese stocks recovers-simply a result of portfolio rebalancing.
After more than a year of dark clouds, we are seeing silver linings in the horizon. The storm generated by the many FUDs have more or less abated. Relative to US and many other countries, China will be the first to come out of the current depressed economic cycles. Positive factors includes:
1. Russian-Ukraine war: This is causing unprecedented price increase in commodities and oil prices. China is perhaps the biggest beneficiary from this conflict; being mitigated to a great extent by having the privilege of buying cheap oil and commodities from Russia, following their “forever Friendship” MOU.
2. Unlike the US and most other countries, China has the luxury to ease monetary measures to support her economy.
3. CCP has vowed to support their local corporations as investors began to understand why those regulatory changes of the past one year are important for the continued stability and development of this most populated country in the world. A stable country is good for investment and is what big foreign corporations look for. For a government that has eliminated abject poverty in less than one generation, I believed they know what they are doing; no matter how painful those regulatory changes may cause in the short term.
In view of the above,. I suspect many large funds are returning to Chinese stocks because of their attractive valuations. My take is that many overpriced US stocks will continue to correct as Chinese stocks recovers-simply a result of portfolio rebalancing.
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jmax : This is because there are14There is unlimited blood supply for 100 million nursing mothers. In terms of prices alone, China has maintained it20Inflation has been high for many years, but the country doesn't need to consider the inflation issue at all. Ordinary people have supported themselves for three generations to solve survival problems
SANDRO 善子 jmax:
Johnnie Worker jmax: U mean the M2 number, that’s not the inflation but CN did print a lot of money in the past 20 years
whqqq : you have an opinion