Have Chinese Stocks Already bottomed?

What's Next for Chinese Stocks?

We can never predict what the Chinese govt will

do next. After successive battering of the market

from the curbs imposed on property developers

 that set loan limit widely known as the 

"three red lines”that pushed many developers to 

the brink of bankruptcy to the crackdowns of 

Chinese technology companies, that send the 

stocks of the latter in a tailspin.  E-commerce 

Titan, Ali baba was fined $2.8 billion in an anti-

monopoly probe, and China's largest ride-hailing 

firm Didi was forced to stop user registrations 

while regulators conduct a cybersecurity review

of the company, just few days after it's US listing.

These introduction of regulations in the past few 

months has wiped out billions of dollars in market 

value from internet giants.  

In a surprise turn of events was the news that the

China State Council promised to shore up the

nation's wobbly financial market by easing

regulatory crackdown on technology companies,

providing new support for property developers &

boosting the economy. This vow 'to support the

economy' address investors fears of the poor

performance of Chinese stocks that risks delisting

from US bourses suddenly send the Chinese

stocks soaring overnight (on 16 March if I'm not

mistaken)

Indeed governments can use fiscal policy to

inject stability in the stock market or to curb

activities in the market. However if a government

wants to encourage inflow of foreign capital, is

best not to intervene in a free market or do it with

some form of "pre-alerts" and not by "knee-jerk"

reaction.

So has the Chinese stock bottomed up now that 

it appears to be support coming from the Chinese 

government?  Experts still flagged a number of risk

including continued regulatory scrutiny, geopolitics 

and uncertainty on the impact of business.  

Some investors may see these dip in Chinese stock

as an opportunity to invest as many are at their 52

week lows.

However, I'm staying away from Hongkong & China 

market for now until the coast is clear.