In the last month, money is coming back to Chinese Stocks. Many companies rebounded a lot, not only the big techs, but also small companies soared.
The top 10 performers in the past month includes, $Gaotu Techedu Inc.(GOTU)$,$Waterdrop Inc.(WDH)$,$EHang Holdings Ltd(EH)$,$So Young(SY)$
While The top 10 companies in the last week includes $I-MAB(IMAB)$,$Dada Nexus Limited(DADA)$,$NaaS Technology Inc.(NAAS)$,$Yiren Digital(YRD)$.
Most of them are small companies, cuz their prices are more flexible, with small market value and limited liquidity. Money-in could be easier to control the increase.
There 25 companies with market value more than $5 billion, the Top 5 performers in the past month are $iQiyi Inc.(IQ)$,$Melco Crown Entertainment(MLCO)$,$Bilibili Inc.(BILI)$,$DiDi Global Inc.(DIDIY)$And$Vipshop(VIPS)$. of which were previously sold off by investors, have rebounded rapidly.
If we use beta, iQiyi,$NIO Inc.(NIO)$, Bilibili ,$XPeng Inc.(XPEV)$,$Tencent Music(TME)$ are for the top ranking.
When the pandemic control ended and reopen began last month. Chinese stocks are welcoming more money.
1. There are often a lot of Chinese money who speculating in small-cap stocks. Therefore, they are more sensitive to situation in China, whichmakes it reasonable that small-cap stocks rebound better.
2. For companies with large market value, the inflow depends on institutional investors, and they are more cautious about entering Chinese assets. However, in the last month, the market began to increase its position in the head stocks, so it will also start to allocate Chinese assets as a whole.
So, apart from big techs, like $Alibaba(BABA)$ $Pinduoduo Inc.(PDD)$ , you can choose some small companies with better flexibility to increase extra return, and help your portfolio outperform ETFs,$KraneShares CSI China Internet ETF(KWEB)$
Comments