Billionaire Investors Trims Alibaba stakes.  $BABA-W(09988)$  (Bloomberg)  Tepper’s Appaloosa Management cut its Alibaba stake by 5% in the three months through September, according to a 13F filing released on Thursday. Alibaba, however, remains the hedge fund’s largest holding, accounting for 16% of its $6.7 billion equity portfolio. Tepper also trimmed exposure in the iShares China Large-Cap exchange-traded fund, the KraneShares CSI China Internet ETF and Baidu Inc. At the same time though, Tepper more than doubled its stake in PDD Holdings, and increased positions in JD.com Inc. and KE Holdings Inc., the filing showed. That stands in contrast to what Tepper said during a CNBC interview in September, whe

So, I was having lunch with my boss, and guess what happened? This middle-aged uncle, maybe in his 40s or 50s, sitting at the next table, started talking super loudly about China stocks with his friends! He said he invested in Alibaba and was all excited because the PE is super low. He also talked about how the Chinese government is doing all these things to boost the economy, like giving vouchers and subsidies for buying appliances and EVs. Oh, and he was raving about how the 11-11 festival made crazy profits for the e-commerce companies! But here’s the thing which he didn't consider  —those vouchers and subsidies are like a one-time thing. Once people buy their stuff, they won’t need it again for ages, so sales will probably drop later. And sure, 11-11 brings huge sales, but guess w

Is China's ¥6 Trillions Debt Relief Sufficient? ¥150 Trillion Says No Last Friday in China, a ¥10 trillion debt restructuring plan was approved, shedding light on the government’s approach to fiscal strategy. This decision was reached during the 12th session of the National People’s Congress Standing Committee, which wrapped up on November 8. In addition to this plan, several laws were passed, including the Preschool Education Law and amendments to the Cultural Relics Protection Law, Property Law, Energy Resources Law, and the Anti-Money Laundering Law. This article is written by Shernice, please hit the like button if you like my article. The most widely discussed aspect of the session was the raised debt limit for local governments aimed at addressing “hidden” debts. Three key measu

Earlier, China seemed to postpone the National People's Congress Standing Committee session until November 8, perhaps to wait on the U.S. election results before deciding how much debt to issue. President Xi likely wanted to see the outcome to determine the scale of debt issuance. But now that the Standing Committee has concluded and announced the fiscal debt issuance plan, the market was shocked by the lower-than-expected numbers. This article is written by Shernice, if you like my article please hit the like button.  This isn’t just my impression—the market reaction confirms it. As soon as the debt issuance plan was revealed, the A50 index dropped, and the RMB weakened. Clearly, the issuance fell below market expectations. So, what’s the thinking behind this conservative debt issuan

The ongoing meeting of China’s National People’s Congress Standing Committee could indeed be pivotal for the Chinese economy, especially in light of recent sluggish growth figures and underwhelming recovery from post-COVID challenges. There is substantial speculation that this meeting will introduce targeted fiscal stimulus to boost domestic consumption and support infrastructure projects, particularly in sectors like green technology and manufacturing, aligned with the state’s long-term vision for “high-quality development.” This policy could be impactful for China-focused stocks and ETFs, presenting promising trading opportunities. China’s economy has struggled with weak consumer demand, regional financial strain due to the real estate downturn, and rising debt. A potential stimulus anno

While China's stock market valuations might appear attractive to investors, a closer examination of the underlying factors suggests that now may not be the ideal time to dive in. Several key considerations, including geopolitical tensions, economic uncertainties, and market dynamics, paint a complex picture that warrants caution. (1) Foreign Funds & Old Monies’ Absence. One of the most significant indicators of a market's health is the inflow of institutional investment, particularly from established US funds. Currently, this crucial source of capital remains noticeably absent from Chinese markets. Based on HK’s SCMP on 11 Jan 2024, China saw $34 billion equities outflow, a show of weakened confidence even as other emerging markets saw notable inflows. (see above) Based on UK’s Financi

$HSI(HSI)$  $Direxion Daily FTSE China Bear 3X Shares(YANG)$  $PING AN(02318)$  $SSE Comp(000001.SH)$  China Faces Rising Risks as Future Credit Downgrade Threatens Currency and Capital Outflows Recently, Reuters reported similar rumors that many may remember: the Chinese government was supposedly planning a ¥2 trillion special bond issuance. Half of this was intended to stimulate consumer spending, while the other half was for supporting local governments with debt relief, including an 800-yuan monthly subsidy per child for families with two or more children. As it turned out, these claims were

$China A50 Index - main 2411(CNmain)$ China investment overview China's investment landscape offers several opportunities and challenges for investors. Here's an overview: Opportunities: Economic Growth: China's economy has shown resilience, with GDP growth meeting targets and a commitment to multilateralism. Government Stimulus: Recent stimulus measures, including liquidity boosts and interest-rate easing, are designed to support economic growth. Market Diversification: China's financial markets have become increasingly attractive to global investors, offering expanded diversification options. Technological Advancements: China is a global leader in technology, particularly in sectors like AI, green energy, and digitalization. Belt and Road In

This article is written by Shernice, if you like my article please hit the like button.  My recommendations are $SMIC(00981)$ $PING AN(02318)$ $BANK OF CHINA(03988)$ $GDS Holdings Ltd(GDS)$  $HSI(HSI)$  On Friday, the A-shares saw a strong rally, indicating that President Xi hasn’t given up on the Chinese market just yet. Although there were three previous press conferences aiming for expectation management, much like the U.S. approach, the

China's decision to raise the local government debt limit by 6 trillion yuan, its largest recent debt-reduction measure, has left markets underwhelmed. Originally anticipated to be as high as 15 trillion yuan, the actual stimulus fell significantly short of analysts' and social media expectations. This article is written by Shernice, if you like my article please hit the like button.  Critics argue that the 6 trillion yuan injection barely covers a year's worth of interest payments on the vast, complex web of explicit and hidden local government debt, which exceeds 100 trillion yuan in total. This plan, in their view, offers no substantial debt reduction and does little to address underlying economic challenges. Some commentators suggest that if the government intends to expand the mo

Ping An Bank reports decling profits amid bad debts  while Huaxia Bank faces highest bad debt ratio in banking sector.  $Ping An Bank Co.,Ltd.(000001)$   $PING AN(02318)$ $China Construction Bank Corporation(601939)$  $Hua Xia Bank Co., Limited(600015)$  $Postal Savings Bank Of China Co.,Ltd.(601658)$   This article is written by Shernice, if you like my article please hit the like button In China’s economic landscape, the central bank is currently the only entity taking decisive action. Last Friday, the Peopl

I. Performance of Global Equity Indices (in US dollars) Data source: Bloomberg, 2024/09/30-2024/10/13, compiled by Tiger Brokers II. Key Market Themes i. China's mainland stimulus policies continue to increase, and Greater China assets have become more volatile. Is this a good time to increase positions? Recently, mainland China's economic stimulus policies have continued to intensify and accelerate. Since the policy direction was set by top leaders in late September, monetary policies such as interest rate cuts, reserve requirement ratio reductions, and lowering of mortgage rates on existing loans have been successively introduced. On October 12, Minister of Finance Lan Fo’an attended a press conference at the State Council Information Office, introducing measures related to “increas

As the U.S. presidential election approaches, traders are gradually starting to price in election risks, with indications showing that Kamala Harris, who had been gaining momentum, is now being overtaken by Donald Trump. The "Trump trade" is regaining its previous popularity, boosting risk assets.Advantages in Swing States and Policy ExpectationsTrump's rising support in swing states brings more uncertainty to the market. Voters still hold high expectations for his promises of tax cuts, energy independence, and increased infrastructure investment. Polls conducted from October 14 to 16 indicate that Trump’s advantage in key swing states is expanding, significantly increasing market expectations for his election and undoubtedly reigniting interest in the "Trump trade."Expectations of an Econ

$HSI(HSI)$  $KE Holdings Inc.(BEKE)$  $SUNAC(01918)$  $Tiger Brokers(TIGR)$   China's latest housing measures, announced at the Housing Ministry's press conference today, have fallen short of economists' expectations, who were hoping for a stimulus package of up to 10 trillion yuan ($1.4 trillion) to boost the world's second-largest economy. Instead, the measures are incremental, offering some relief to developers' financial struggles, but probably not enough to fully stabilize the housing market China's Minister of Housing

This week, Hong Kong stocks experienced a significant downturn, with the $HSI(HSI)$ dropping by 6.53%, which has certainly dampened the spirits of restless investors.Hong Kong, A-shares DeclineOn the first day after the National Day holiday, the State Council Information Office held a press conference to discuss how to "systematically implement a package of incremental policies to solidly promote an upward economic structure and ensure continuous positive development." There was a lot of anticipation surrounding this meeting, as many hoped to hear detailed stimulus plans. However, it turned out to be merely an informational session, with no new policies announced. As a result, both Hong Kong and A-shares plummeted, marking the end of the recent bul