Be Bullish About PDD& BABA
China's services activity expanded at a faster pace in July, supported by a jump in business in the summer travel season, a survey showed on Thursday. China's Caixin Services Purchasing Managers' Index (PMI) rose to 54.1 in July from 53.9 in June, marking an expansion of business activity across the services sector for the seventh straight month.
Companies said improved operating conditions, greater client numbers and new product releases had boosted sales at the start of the third quarter, according to the survey. "The number of customers since the beginning of summer has risen by 60 to 70 percent compared to the same period last year," said a receptionist surnamed Wu at a Hangzhou-based homestay service provider.
The job market in the service industry is booming, with firms increasing hiring figures for the sixth month in a row. Company's payroll numbers expanded at the fastest pace in July since March.
Therefore, buying Chinese ADRs at todays price is a steal. Have no fear. China is aiming for self reliance in technologies that the country is deficient in. It is spending loads on innovations. US China geopolitical tension will continue but businesses will have to go on.
Chinese Economy will improve. Like it or not, China with her huge population base, pragmatic policies and hard working population will be the no. economy in the world. It is a matter of time. Treat your investment as a medium term fix deposit which will pay handsome ‘interest’ in the near future. $Alibaba(BABA)$ will not stay long below $100 and $Pinduoduo Inc.(PDD)$ below $90. The best is yet to come.
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