bernardtayet
2022-03-16

No one can with certainty said Chinese Stocks have bottom out. Prices are still dropping alot due to institutional sell off due to fear of delisting and continued regulatory control. Retailers, like Tigers friends here perceive that prices will decline further too. 

To me, most Chinese stocks are undervalued rather than reaching their bottom. Without government intervention, prices will continue to decline when more global funds shun Chinese ADR including the giant valuable tech stock. 

The sudden reversal in prices is due to policy signals from Chinese government to prevent financial instability and deceleration of economic growth. Investors are assured that the regulatory control will end soon, the delisting fear of US listed Chinese Stocks is reduced by USA and China cooperation agreement.

This is a piece of good news for all investors as well as the companies. It is also good for the Chinese economy growth amid the covid virus dampening their economy outlook this year and ahead. A right move indeed.  

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Comments

  • Reaper709
    2022-03-20
    Reaper709
    some counters are at great discounts👍👍
    • bernardtayet: 
      Do your research before buying. Trade with caution.
  • bwjx
    2022-03-20
    bwjx
    Given how volatile China stocks are to geopolitical issues, I think is better to wait out and see how things unfold the next weeks. The relief rally more or less done and upside is limited.
  • jasmine_tan
    2022-03-18
    jasmine_tan
    Rebound was encouraging but still at risk from macro factors e.g Russia-Ukraine war would hold until things are more stabilised
    • bernardtayet: 
      Definitely true. Thanks for the sharing. Hope for peace soon
  • yeoldCK
    2022-03-18
    yeoldCK

    It is good to have a shake out before things go really bad. So, overall it is good for retail investor. 

  • Songa
    2022-03-18
    Songa
    Something to look forward to but proceed with care. It’s your hard earn money.
    • bernardtayet: 
      Always trade with extra caution n with spare cash that you don't need in next 12 months. Just sharing my view only.
  • Big Little
    2022-03-20
    Big Little
    Good and careful views. I also don't think it has bottomed out yet. Despite the volatilites, most charts are seeing lower highs and lower lows.
    • bernardtayet: 
      Thanks for the kind words and sharing similar views.
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