Chinese technology stocks are once again caught up in regulatory curbs, as in the latest proposed tightening of the online gaming industry, resulting in significant sell-off of the technology stocks at large, including $Alibaba(BABA)$
Investors were rushing for the exits in fear that the latest regulatory moves may be the onset of another clampdown on the technology sector. However, I believe on the contrary that the Chinese government is introducing these regulatory measures to promote orderly, healthy, competitive and sustainable growth of the local technology industry, rather than trying to stifle its growth, especially when China has been trying hard to boost its post-pandemic economic recovery that has fallen behind other major economies.
With their still-strong balance sheets and robust fundamentals, backed by huge demands of an enormous domestic market, I remain optimistic of the long-term growth prospects of the Chinese technology stocks and will continue to stay invested in fundamentally strong companies for the long-haul. In a volatile market as such, I would always remind myself of the wise words of Warren Buffett to be fearful when others are greedy and to be greedy when others are fearful.
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