Chinese tech stocks on renewed growth path
$LI AUTO-W(02015)$ and $XPENG-W(09868)$ are expected to post their latest quarterly earnings on 20 May and 21 May respectively. With encouraging economic data coming out from China lately, a EV demand recovery may be in sight and that may help to improve the outlook by the EV makers that include $NIO-SW(09866)$ and the latest entry $XIAOMI-W(01810)$ as well. The Chinese EV makers are adept in containing their costs and have also been turning their eyes on overseas markets. In fact, they have been taking the world by storm with their EVs that are much cheaper than competing western models. Hence, I believe that weaknesses in their stock price may present buying opportunities for their long-term growth.
Chinese tech stocks are finally seeing daylight, as the tech clampdown has given way to more accommodating policies to encourage renewed growth of the tech sector. $PDD Holdings Inc(PDD)$ will be announcing its first quarter earnings results on 24 May. I like Pinduoduo for its focus on agriculture and fresh products, which has helped to differentiate the Chinese online retailer among rising competition from other e-commerce platforms. Furthermore, its wide distribution network has enabled Pinduoduo to establish its reach to the most rural parts of China, unlike other competitors that emphasize their presence in big cities. The company has also been able to maneuver well during the crackdown by regulators on the technology sector, so it does not have a bull eye pasted on its back and suffered less damage compared to its peers. I'm hopeful that its coming earnings results will bring cheers to its investors and help Pinduoduo stock to regain its past glory.
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