Why HSI and China markets are the next big opportunities.


This article is written by Shernice, if you like my article please hit the like button. 

$HSI(HSI)$ 

$Trip.com Group Limited(TCOM)$ 

$MEITUAN-W(03690)$ 

$JD-SW(09618)$ 

$Alibaba(BABA)$ 

Let's dive deeper into the China stock market. A key metric, the Buffett Indicator, reveals a stark contrast between the US and China. While the US sits at an alarming 198%, China's ratio is just 36% - far below the fair value of 100%. Even after recent gains, China's Buffett Indicator remains remarkably low.


The price-to-earnings ratio tells a similar story. China's P/E ratio stands at 14.24 times, significantly lower than the US market's 28-29 times. This suggests Chinese stocks still offer value beyond their current price.


International investors are taking notice, flocking to Hong Kong shares for their transparency and liquidity. While speculative enthusiasm drove the initial surge, recent volatility stems from late entrants seeking support from China's National Development and Reform Commission.


For savvy investors who bought in earlier, particularly in sectors like ports, this turbulence presents another buying opportunity. Globally, Chinese stocks remain undervalued.


Looking ahead, I predict Hong Kong shares will hit new highs. The recent rally, fueled by short squeezes, may slow pace but still has room for growth. Key factors to watch:


1. China's stock market rise could divert funds from the US, potentially impacting the market.


2. A capital outflow from the US could ripple through Asia's markets.


Despite this, I remain bullish, particularly on Alibaba, Meituan,JD, Tencent, Trip.com, and PDD. However, expect slower growth in the US and Asian markets like Singapore and Malaysia.

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# Policy Falls Short? Is China Stocks Bull Market Over?

Modify on 2024-10-10 22:27

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  • Pluto891
    ·10-10
    It is cyclic.
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