pixiezz
08-20

$Alibaba(BABA)$ BABA is my favorite as monster presence in China, crazy cheap with load of net cash and upcoming HK Connect listing allowing Mainlanders to buy. But I think Chinese stocks in general ready for a huge (mostly catch-up) run. All this talk of "terrible China economy"... Hello? when has 4% been "terrible". Just because no longer growing at 8%-10% does not mean crazy cheap stocks are worse investments than U.S. or European stocks with very high multiples and economies growing at HALF the rate. The illogic is crazy. Chinese stocks done terribly but that has nothing to do with China's economy getting bigger at faster rate than all developed countries and company growing revenues and profits. Many China based tech companies now also growing non-China business rapidly (can we say TEMU? But also Alibaba international also growing rapidly). Hard to compete with China e-commerce giants selling products form China. Heck a FoxConn iPhone assembly worker (semi-skilled) gets $3.50/hour! Workers at less sought after employers can paid like $2/hour for manufacturing. The biggest reason China EVs can be made so cheap as wages. An assembly line worker's all-in pay is like $15,000/year - less than 1/4 of the all-in pay for a U.S. worker. Americans and Europeans will continue to buy products from TEMU and Alibaba via direct sales from China at low value points (that skirts tariffs) because products so crazy cheap.


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