16 August 2021: Market fear over Chinese stocks. When will it be over? Who knows...
$恆生指數(HSI)$ Hang Seng spot index is not looking great today, having fallen from a day peak of 26,400 to a day low of 26,040 and is currently around 26,150, being down almost 1%. Shenzhen index is not looking great either, and is down around 0.7% at 14,693, which is just within points of 14,700. Shanghai index is almost flat at 3517.
Near term wise, Chinese markets are really not looking great. Market participants in particular the institutional funds are worrying about the implementation and/or introduction of new regulations. Just over last weekend, there was comment made by state media on gaming companies confusing gamers with wrong history due to the use of historical figures in China history. This news impact on game streaming companies is definitely not negligible since $嗶哩嗶哩-SW(09626)$ hong kong shares, $騰訊控股(00700)$ Tencent, $網易(NTES)$ share price suffer again today. HSI Tech is down 2.7% at 6400 now...
Should I rush into Chinese tech stocks? No not at this stage since there is a possibility of another leg down. $小米集團-W(01810)$ Xiaomi being into physical business in addition to its tech background, has made it relatively resilient. However, short term price movement wise, it may not be able to withstand the barrage of negative news should the negative market sentiment spread. Nevertheless, I will continue to hold my position in Xiaomi.
Readers should know that I have no intention to own any Alibaba shares at this stage. Even if it did go down to around 160 USD.
Douyu's financial results will be released today... Lets see if it will shed light into how Huya may perform as I have the view that Huya will have a much better financial results than that of Douyu. Readers should nevertheless know that the poor price performance of Bilibili and Kuaishou Tech may still affect price sentiment of Huya with or without good financial results.
As always, I do not think now is a good time to take big positions in Chinese tech stocks. If I want, I will nimble and add on small positions to my existing positions slowly. As for Haidilao, I do not think the price structure looks great and there may be a significant downleg. I have not studied the fundamentals of the business though and interested readers should study its business and funamentals before taking any positions be it long or short positions.
As always, this should not be construed as any investment or trading advice.
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- Michane·2021-08-16Yes, it is definitely not the right time to take big positions in any stocks now as there is still more room for it to get to the bottom, with the new wave of Delta variant..23Report
- KeenLee·2021-08-16Impact is only temp. - Hang Seng is still not ar his 52 week low there is still a good run on a long run15Report
- RDPD富爸穷爸·2021-08-17The probability for chinese stocks to go up is higher than going down if you are taking a medium to long term perspective. For me, they are a buy.5Report
- KLCC·2021-08-16Is it the bottom yet?5Report
- TyLim·2021-08-17consider HST then. hang seng tech etf listed in sgx. its probably going to reach its all time low soon9Report
- Coat·2021-08-18more of a political problem. Chinese stocks are safer than US stocks imoLikeReport
- jacq·2021-08-17but baba is still doing well in terms of its business right?LikeReport
- CIG·2021-08-16手指要听话 千万别乱动5Report
- FionaWu·2021-08-26Hooe this will end soonLikeReport
- mummumtumtum·2021-08-17China outlook is still the brightest, those with positions should hold onto it, the dip will bring in the interest of investors looking for a bargain.5Report
- Kamilo·2021-08-17patience goes a long wayLikeReport
- missielala·2021-08-22Patient like Buffett and hopefully rich like him too.1Report
- 逢場作戲又一日·2021-08-18What a great down ! Fear or greEdy ! No Bottom line trend. stay tuned… cash is king !1Report
- AlvinCWC·2021-08-17No rush. Follow your own plan and trade accordingly. Anyhow China is still the second largest super power, and moving fast4Report
- MengKeng·2021-08-17CN market will recover soon, just be patient and hold on, then we can buy at the lowest price and make big profit4Report
- KwLau·2021-08-17Chinese stocks are only for the strong hearted now.3Report
- KYHBKO·2021-08-17it is a still growth though at a lesser rate. there are various factors and we need to factor in guidance on future earnings & market sentiments. invest well all1Report
- Phoenix5104·2021-08-16If you think it is a good stock to buy and hold, then this is the time to buy. Only fool will buy when market is bullish.2Report
- Back2Nature·2021-08-19Unless you have faith in china stocks, otherwise, enter the market within your means and judgement Good luck to everyone [Bless]1Report
- koolgal·2021-08-17I like nibbling, little by little! ?1Report