To The Moon

Chinese stocks are now looking to recoup some US$10 trillion of losses from the last three years, with valuations hovering near a decade-low. The MSCI China Index tracking more than 700 companies traded at home and abroad has rebounded 12 per cent from a January low, ranking it among the best performers among major global peers during that period.

Foreign investors' appetite for Chinese stocks continues to recover as they become less pessimistic about the prospects of a recovery.

Meanwhile, geopolitical conflicts will also continue to drive global investors to diversify or leave China and to fear being discriminated against globally for being friendly to the country. That means China will continue to face difficulties attracting investment.

Let's look into a few Chinese ADRs and see how's their trend. The hottest one will definitely be $Taiwan Semiconductor Manufacturing(TSM)$  , strongly stimulated by AI rally. Its capability in the sector is pretty strong. Although its Taiwan plants were affected by earthquake, but it seemed like no critical impact to the production and I believe the share price will continue to trend higher next week.

TSM daily chart

Next, let's look at $TENCENT(00700)$ . Looking at its technical chart, we can notice a very good signal that the stock is standing back to EMA 200 green line. This trendline is always be used as a trend reversal indication. For such, I believe Tencent will continue to move higher for coming weeks. Fundamental wise, nothing much to worry for such a big giant.

Tencent daily chart

As compared to Tencent, $Alibaba(BABA)$  

Chinese e-commerce giant Alibaba Group staged its second highest quarterly buyback on record, spending $4.8 billion on shares in the first three months of 2024, as its stock neared multi-year lows.

Alibaba repurchased 524 million ordinary shares in both the U.S. and Hong Kong markets in the quarter. Its technical chart shows that the company is forming a ascending triangle pattern. The stock will probably continue to consolidate while forming a higher lows pattern to trend upwards slowly over time.

Alibaba daily chart

For the e-commerce stock like $Pinduoduo Inc.(PDD)$  and $JD.com(JD)$  , both of them are performing well and among the strongest in Chinese ADRs. Although PDD retraced quite some since early this year, but everything seems to be pretty healthy and the share price is well supported above EMA 200. Moreover, this LOW-cost e-commerce giant beats Wall Street estimates for fourth-quarter revenue few weeks ago, driven by robust user growth and sales on its global platform Temu.

PDD daily chart

Similar to PDD, JD also showed some positive share price movement, rebounding from the price range of 20 USD towards 26 USD now. This Chinese retailer reported fourth-quarter earnings that, while perhaps not that impressive on a stand-alone basis, did handily beat analyst estimates. With JD's stock trading at a very low single-digit price-to-earnings (PE) ratio, it didn't take much to get the stock moving higher.

JD daily chart

How do you find this Chinese ADRs sharing? Do you own any of them? Will you invest in them? Come and share your point of view with us! 

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