Chinese stocks 🇨🇳🇨🇳🇨🇳, how are you?

China's stock markets tumbled on Friday as the strength of the US dollar and a decline in tech shares set off a wave of foreign outflows.As the Chinese Communist Party gears up for its central committee meeting, the focus will likely be on enhancing growth potential while managing risks in the post-property era. This indicates that China might continue existing reform measures, aiming for stability over bold new initiatives. The outcomes of this meeting could shape China's economic landscape significantly and guide investor sentiment going forward. Today, let's look into the technical charts of a few famous Chinese stocks.

BABA

Alibaba Group Holding's sales campaign for this year's 618 shopping festival is seeing strong momentum, according to preliminary data from the firm's Taobao and Tmall platforms, helping boost the Chinese e-commerce giant's prospects of returning to double-digit revenue growth by 2027.

BABA daily chart

Baba share price retraced since early June and it headed towards a long term trendline support line (as drawn in Orange coloured line in the chart above). This is a strong long-term support line and the share price would probably rebound at there. However, for short term, the share price drops below EMA200 and I believe it will continue to plunge towards the orange coloured line area. Bearish vote for $Alibaba(09988)$ .

PDD

Pinduoduo's standout performance has turned it into a model for competitors, although the discount shopping app has become more aggressive recently as it looks to maintain its appeal. Before its main promotions began in late May, Pinduoduo quietly launched a system designed to automatically adjust prices within the range set by merchants, so that a product's price drops if a competitor platform offers a lower price.

PDD daily chart 

Great breakout for PDD from its downtrend resistance line in mid May 2024. The share price then retraced to retest the support line which was converted from the resistance line previously. It seems like PDD is able to hold well above this support line and tests it twice. Last night, it rebounded again upon touching this line. Everything is still healthy for PDD, therefore a bullish vote for $Pinduoduo Inc.(PDD)$  .

JD

More than 500 million users have placed orders during the JD 618 this year. There were 83 brands with cumulative turnover surpassing RMB1 billion, while over 150,000 small and medium-sized enterprises saw their sales increase by more than 50%.

JD daily chart 

How about JD, one of the PDD and BABA rivals? For JD, the share price had been in an uptrend since March this year and managed to breakout above the EMA200 resistance line in May. However, last week, the share price fell below its orange coloured mid term uptrend line, which might signify the end of this wave of uptrend. Moreover, the share price dropped below its EMA200 trendline as well. Several technical indicators seem to turn bad for $JD.com(JD)$ .

BILI

Mou Ding Tian Xia', a mobile game distributed by BILIBILI-W has received positive feedback from brokers after its revenues during its first 5 days of debut surpassed expectations. In addition, BILIBILI's livestream e-commerce GMV during the 618 shopping festival grew 146%, while overall order volume hiked 154%.

BILI daily chart 

Strong breakout for BILI over its neckline resistance at around 16.95 USD this week! Nothing much to comment for such a bullish stock, we can make the 16.95 USD as short term support and near term target price will be 22.47 USD. With the breakout on 20 June followed by a significant trading volume, $BILIBILI-W(09626)$ will surely continue to trend higher next week. 

Tencent

Tencent is removing from Thursday its hit mobile game "Dungeon & Fighter" (DnF Mobile) from selected Android app stores as its contracts have expired, the company said. Game developers in China have long had a contentious relationship with distributors over issues such as revenue sharing, as mobile games become increasingly popular in the broader game market.

Tencent daily chart

By looking at the technical chart, Tencent is one of the best performing Chinese stocks this year. The rally began in March and sustained until now. In June, the share price took its time to consolidate somewhere around 380 HKD. I believe as long as the share price maintains above the EMA25 trendline support (375 HKD), I believe $TENCENT(00700)$  will slowly head towards 400 HKD and breakout eventually. Let's see. 

Do you trade Chinese stocks? Are you a fan of Chinese ADRs? 

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