🇨🇳 Chinese stocks 🇨🇳 Up and Down

I wonder how many investors are still having their hopes with Chinese stocks, which has been undervalued for the past years without an obvious trend reversal until today. 

China's Shanghai Shenzhen CSI 300 and Shanghai Composite indexes slid 1.6% each on Friday, and were among the worst performers in Asia. Losses in technology and mainland stocks dragged Hong Kong's Hang Seng index down nearly 3%.

Chinese technology stocks were battered by fears of more U.S. sanctions, after a top Commerce Department official suggested that SMIC- the country's biggest chipmaker- may have violated U.S. trade law in making a processor for a flagship Huawei phone.

Sentiment towards China was also rattled by reports of a new U.S. bill that will limit investment in Chinese stocks by U.S. mutual fund firms. Such a move presents a drastic decline in foreign capital flows to the country.

Let's look at the movement of a few famous Chinese stocks. First and foremost, we will start with the new EV makers, Xiaomi! The company is going to release its new EV end of the month and everyone is curious with the new model selling price. If there's a good news, it will probably push the share price higher $XIAOMI-W(01810)$  after being well supported by the EMA10 trendline for the past 2 weeks. Excited with their new EV? I am! 

Xiaomi daily chart

As for $BYD COMPANY(01211)$ , the market leader in EV industry, the company share price shows the strongest movement recently among all the EV companies. Currently, it is challenging the EMA200 support but I strongly believe a good earnings next week will push the share price through this barrier and engage into a new bullish journey.

BYD daily chart

Next, let's look at the Chinese giant leader, Alibaba! Well, nothing much to see from its technical chart, the share is currently experiencing a long consolidation phase since early 2024. For those who don't want to wait, its better to rewatch this stock after it breaks through the major resistance at around 78.60 USD. The only thing we can observe here is the Friday's candle is touching the short term uptrend support line and I do believe $Alibaba(BABA)$  will have a technical rebound here next week!

Alibaba Daily chart

Pinduoduo! A bit disappointed with its share price last week. After delivered a strong earnings, the company share price rocketed over 10% but unable to hold till the end of the day, causing a big bearish candle with massive volume. However, I still remain a $Pinduoduo Inc.(PDD)$  view for this stock because the stock reaches its critical support now at 123 USD. Even it continues to drop, the room for the downside is very limited because we will have another strong support (EMA 200) not far away. [Cool]  

PDD daily chart

Last but not least, let's look at BILI. The share price rallied after the earnings release followed by a pullback and closed the gap up. It will be hard to predict the share price next week, with 50% upside and 50% downside. Downside is due to the big volume during the gap down two days ago. On the other hand, upside is possible too as we observe a golden cross between EMA 25 and EMA 50, which represents a trend reversal signal. I choose the later for a bullish $Bilibili Inc.(BILI)$  vote!

BILI daily chart

How do you like Chinese stocks? Or you prefer to stay away from Chinese markets due to unstability? Do you think Chinese stocks are undervalued now? 

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