Chinese ADRs 🇨🇳🇨🇳🇨🇳

The Hang Seng Index has been extend its world-beating run-up from April, rising almost 5% this week, as stocks' beaten-down valuations drive inflows and the mainland's regulator pledged to support the offshore market by expanding the exchange link programme with the city and encouraging quality listings.

Optimism is growing that China's recovery will gather further pace after two key cities of Hangzhou and Xian scrapped all restrictions on home purchases, and both imports and exports beat projections last month. Let's look into a few hot Chinese stocks in market.

BABA

Alibaba Group Holding, one of the world's largest e-commerce platforms, reported a 10-per cent jump in net profit, its biggest annual earnings growth since 2021, as its revenue beat analysts' forecasts in the financial year that ended on March 31. Also, Alibaba, confronted by a fierce e-commerce market in China, is leveraging artificial intelligence to enhance its competitiveness. 

Baba daily chart

Alibaba stock soared over the week after its great earnings result. Currently, the share price stays well above the EMA200 support, pretty safe. A critical support that must hold will be around 78.66 USD. All the short term, mid term and long term EMA lines are curving upwards as well, a definite bullish setup for the share price $Alibaba(BABA)$  .

PDD

Temu, which lists a Boston headquarters, is taking PDD's playbook for e-commerce in China and applying it globally. It's one of the drivers of PDD stock. Founded in 2015, PDD operates the shopping platform Pinduoduo in China. Pinduoduo offers deep discounts and takes what analysts call a gamified approach to shopping. The app features games that let users win further discounts and encourage frequent check-ins.

PDD daily chart

Nice breakout for $Pinduoduo Inc.(PDD)$  last night. As we can observe from the chart above, PDD broke above the Orange downtrend resistance line for the first time since early this year. This signifies a trend reversal and PDD will soon engage into a new round of rally, with short term target of breaking new all time high.

JD

Headquartered in Beijing, JD provides supply chain-based technologies and services in the People's Republic of China. The company offers computers, communication, and consumer electronics products, as well as home appliances and general merchandise products.

JD  daily chart

For JD, the share price moves along its EMA10 trendline since end of April, without falling below it. Gold crosses over EMA200 are completed by EMA10 and EMA25, the next one will be EMA50 which is extremely close now. I believe JD will be bullish $JD.com(JD)$  next week following the good trading sentiment in China market.

TSM

The company's shares soared to an all-time high in April, as it remains in an enviable position to benefit from the rise of AI technology, being Nvidia's sole manufacturer for the most advanced training chips. TSMC also fabricates semiconductors for Apple Inc., which just announced a new lineup of iPads, and Advanced Micro Devices Inc., the closest competitor to Nvidia in the AI chip race.

TSM daily chart

For TSM, the share price holds pretty well above its neckline support at 146.54 USD. The recent pullback below EMA50 seems to be a bit harsh but the stock managed to stand back to the EMA trendlines pretty fast. I remain my bullish view on $Taiwan Semiconductor Manufacturing(TSM)$ , also the stock price is near its historical high. I think all time high is just a matter of time for TSM.

Tencent

Shares of Chinese tech giant Tencent Holdings rallied after the company released its earnings results for the first quarter of 2024, earlier last week.

Tencent has various businesses across video games, online advertising and social media, video and music subscriptions, fintech services, and cloud software. But while video games get the lion's share of attention and were slightly down, virtually all of Tencent's other segments posted solid growth.

Tencent daily chart

Tencent share rallied over the week after delivered decent earnings. The stock moves upwards in an extremely bullish way, as the candles are setup in a very steep angle, around 45 degree. EMA10 will be acted as Tencent short term support, but nothing to worry too much for such bullish stock. I believe $TENCENT(00700)$ will continue to trend upwards next week.

Have you regain confidence in Chinese stocks? Will you start to relook into them? Come and share your points of view with us ya. 

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