@LMSunshine：China Cuts Cooperation with US Following Pelosi’s Taiwan Visit: How Pelosi's Taiwan Visit Can Affect Our Portfolio & the Global Market 🇺🇸✈️🇹🇼📉📈(Part 3) $Alibaba(BABA)$ Following Nancy Pelosi’s visit to Taiwan 🇹🇼 earlier this week, relations between the world’s 2 largest economies are further strained with China 🇨🇳 halting ties with the US 🇺🇸 on a range of critical issues as a sure sign of retaliation. China’s Foreign Ministry announced: ❌🤝❌ (1) Cancellation of upcoming military-to-military talks; (2) Suspension of bilateral talks & collaborations on issues including repatriation of illegal immigrants, counternarcotics, & legal assistance in criminal matters; & (3) Suspension of joint efforts to tackle the climate crisis. In addition, it’s also reported that 🇨🇳 has decided to adopt sanctions on Pelosi & her immediate family members. This declaration came on 5/8 (Fri) 📢 as Beijing staged massive military drills surrounding the island of 🇹🇼 for a 2nd day (See photos). Beyond 🇹🇼, 5 of the missiles fired by 🇨🇳 landed in Japan’s Exclusive Economic Zone off Hateruma, an island far south of Japan’s main islands. This was viewed as a serious threat to Japan’s national security & the safety of its people. Immediate Impact Due to Pelosi’s Visit: (1) The military drills this week have forced a number of vessels ⛴🚢🛳 to reroute their journeys, causing disruptions to the regional & global economies. (2) Korean Air & Singapore Airlines had to cancel flights to & from Taipei on 5/8 because of the exercises, with the Korean carrier also cancelling its Saturday flights & delaying Sunday flights ❌✈️❌ (3) The military talks were intended for the coordination of air & sea operations to prevent unintentional flare-ups e.g. by warships operating close to each other at sea & analysts are concerned that halting these talks could escalate matters. Impact on Stocks & Our Portfolio📉📈: (1) The China, HK, & SG markets shrugged off the negativity after Pelosi left 🇹🇼 & closed in green while the Nasdaq & S&P 500 closed in red on 5/8. This was meant to be a good sign for investors (read Part 2 of my post). However, with this new tension, it is unsure how the markets will react on 8/8 (Mon) & the week ahead. (2) Despite being the world’s biggest carbon polluter, 🇨🇳 is also the largest producer of most of the world’s critical minerals for the green revolution. Will EV & clean energy companies in the 🇺🇸 be affected❓We’ll have to wait & see. (3) The HK & AUS markets may benefit from this stand-off if investors are not too spooked & worried about the outbreak of another war. (4) These new uncertainties brought about by the worsening 🇺🇸-🇨🇳 relations may create new supply issues & prevent US markets from continuing the bull rallies it was enjoying. Especially vulnerable may be the 🇨🇳 listed stocks on the 🇺🇸 stock exchange as investors may lose confidence leading to a minor sell-off. 🤔💭 My Thoughts: I don’t think 🇺🇸 will delist Chinese companies as a form of retaliation as provoking 🇨🇳 is not to it’s benefits as can be seen from above. However, 🇨🇳 may not release the needed information to 🇺🇸 for auditing which could end up contributing to the delisting of the Chinese companies. It would not hurt 🇨🇳 to have its companies delisted from the 🇺🇸 stock exchange as they can apply to be listed on the HK stock exchange which may be more in-line with China’s desired one-China principle. As such, I would not view Tencent’s $Tencent Holding Ltd.(TCEHY)$& Alibaba’s $Alibaba(BABA)$recent bottom a buy opportunity in view of the destabilised 🇺🇸-🇨🇳 relationship. However, if I were to buy these stocks or Chinese companies, I would buy them via the HK stock exchange $TENCENT(00700)$$Alibaba(09988)$ For additional sharing on this topic from me, click on the Snoopy icon to access parts 1 & 2 below🤓 Please help to like my posts, many thanks🤗 If you enjoy reading my posts, you can follow me & be updated whenever I post😉 ⭐️ Why did Stocks Drop:How Pelosi's Taiwan Visit Can Affect Our Portfolio & the Global Market 🇺🇸✈️🇹🇼📉📈 (Part 1) ⭐️ What to Watch For:How Pelosi's Taiwan Visit Can Affect Our Portfolio & the Global Market 🇺🇸✈️🇹🇼📉📈(Part 2) As usual-🤔💭 Consider POV & Actions of investors + 👩🏻💻👨🏻💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰 Source websites: Politico, the guardian, the washington post, & elements. @TigerStars@CaptainTiger@MillionaireTiger@Tiger_chat Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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