For global investors with money in China's stock markets, the latest economic numbers are not of any comfort and just a reminder that the recovery they are betting on will take a while to happen.
Recent second-quarter growth figures in China pointed not only to an economy growing below target, but also showed there is no sign of improvement in its anaemic property sector and the domestic consumer is more pessimistic and unwilling to spend.
BABA
An artificial intelligence expert is expected to soon depart Alibaba Group Holding and start his own business, according to sources and Chinese media reports, amid mainland China's growing investor interest in start-ups that could potentially become the next OpenAI, creator of ChatGPT. Algorithm engineer Zhou Chang, who worked on the Tongyi Qianwen large language models, has decided to leave Alibaba's cloud computing unit after seven years at the firm.
Alibaba daily chart
Boring movement in BABA chart as we are unable to observe a clearer direction, anyway some weakness sign as the share price stays below EMA200. Will follow up again in coming weeks.
PDD
Shortly after the release of the shopping app Temu in autumn 2022, Pinduoduo renamed itself PDD Holdings and has since served as the holding company for both platforms. In 2023, PDD Holdings recorded record sales of $34.9 billion. Compared to the previous year, this corresponds to sales growth of almost 90 percent, which, according to the company, is due to an increase in revenue from online marketing services and transaction services.
PDD daily chart
Not a very healthy chart for PDD as the stock is in a short term downtrend pattern now, after retracing for 2 months. However, the next hope will rely on the support of EMA200 line (GREEN coloured), which is pretty close with current price now. I believe PDD will get some strong rebound here upon touching. A bullish vote for PDD $Pinduoduo Inc.(PDD)$
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 fall below its orange coloured mid term uptrend line, which signified 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. A firm and definite bearish vote for JD $JD.com(JD)$
NIO ; XPENG ; LI
Another few stocks to keep in watch will be Chinese EV stocks. Following the rebound of Tesla, will Chinese EV like NIO and Xpeng follow? Chart wise, they are both still in an obvious downtrend.
Nio share price
Xpeng daily chart
However, with their improving sales and the comeback of EV demand, I believe the bottom might just be around the corner for all NIO, Xpeng and Li Auto. Especially NIO, its deliveries hit new high recently. For such, I go for a bullish vote for both of them $NIO Inc.(NIO)$
Do you trade Chinese stocks? Are you a fan of Chinese ADRs? Personally I am a bit disappointed with Chinese stocks performance for the past 2 years.
@TigerStars @MillionaireTiger @CaptainTiger @Tiger_comments @TigerGPT @Daily_Discussion
Comments
Based on recent news and market analysis, here are some insights on Chinese ADRs:
Alibaba Group Holding Ltd. (BABA): The stock has shown a boring movement on the daily chart, with no clear direction. The share price is currently below the EMA200, indicating some weakness. Further monitoring is recommended to assess any potential changes in the stock's trend.
Pinduoduo Inc. (PDD): The release of the shopping app Temu has had a positive impact on the stock. However, further analysis is needed to determine its future performance.
JD.com Inc. (JD): The share price of JD.com has fallen below its mid-term uptrend line, signaling the end of the recent uptrend. Additionally, it has dropped below the EMA200 trendline. Several technical indicators suggest a bearish outlook for JD.com.
Chinese EV Stocks (NIO, XPENG, LI): NIO, XPENG, and Li Auto are still in an obvious downtrend based on their daily charts. However, with improving sales and the comeback of EV demand, a rebound may be on the horizon. NIO, in particular, has recently achieved record-high deliveries. It is important to closely monitor these stocks for any signs of a potential turnaround.
Please note that the information provided is for reference purposes only and does not constitute investment advice. Investing in Chinese ADRs carries risks, including exposure to the Chinese market and regulatory uncertainties. It is recommended to conduct thorough research and consult with a financial advisor before making any investment decisions.
Sources:
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