$Baidu (BIDU.US)$$Alibaba (BABA.US)$$Tencent (TCEHY.US)$$HUY...
$Baidu(BIDU.US$ $Alibaba(BABA.US$ $Tencent(TCEHY.US$ $HUYA Inc(HUYA.US$ $DouYu(DOYU.US$ The way I see it, buying these companies is a bet on the actions of the Chinese government. Personally, I think this is extremely risky. I have less than 2% of my total portfolio in these companies and my plan is to continue adding a bit every month in case I turn out to be wrong, but keeping my overall exposure to about 2.5%. However, I know that a lot of retail investors are bullish on these companies. There are good reasons behind it, but I think it's extremely important to consider the risk here and manage the exposure. As Peter Lynch likes to say, be careful when thinking that a company cannot go lower because it can and often it will. DOYU, HUYA, Alibaba, Baidu and Tencent can very well turn out to be value traps for the next year. We still haven't seen any signs that the bearish trend in their prices has been reverted. If you want to buy the dip, that's fine, but just be careful and manage your exposure. I'm not a financial advisor and you can make up your own mind, but just do your research and think about the risk. I don't think we will see a big rise in price until we see a catalyst and I think there are stocks, even indexes, that can offer better returns over the next 12 months.
Overall, I'm neutral, given China's recent regulation record plus the slowing revenue and earnings growth seen. However, I also think that the market is punishing those companies way too much so I think they're actually trading at a decent discount, which is why I continue to build a position even though it's a smallish one.
What do you think? Bullish, neutral or bearish?
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JG25 : I don't think that the CCP will "completely destroy" These companies... I do however think that these regulations imposed are necessary for long-term growth of the country as a whole... just what I think haha
what are some stocks/indexes that you're looking out for? pls share!
yy_manman JG25 : I agree! Ultimately the CCP will only do what’s the best for the country even it will destroy the market value of these big Corps.
I think of these companies can survive these regulation and uncontrollable changes from external forces, they will be good in future!
Daniel Zn JG25 : What’s good for the China is bad for capitalists and the stock price of the Chinese companies
干练的佩恩 : Because we are Chinese, we have absolute confidence in these companies. Even thinking about it is irrational when it comes to investing. But we have no objection.
71173200 JG25 : As a consumer,Taobao cannot compete with JD and PDD rIght Now
71173200 干练的佩恩 : The things I bought this year were mainly from JD and Pinduoduo. Taobao is really expensive and the customer service is not good. The Alibaba Cloud government doesn't use it anymore. What will happen in the future, plus the entire current corporate scandal on Ali. I was very optimistic about Ali two years ago, but not necessarily now
SunBird 71173200 : What kind of scandal is it?
s t e a d y 干练的佩恩 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
丁蟹NA 71173200 : I work as a cloud service, of course not Alibaba Cloud. This demand is growing exponentially. It's fine if the government doesn't use it. This thing is definitely forcing exponential growth. Now all computing power is cloud-based, data analysis, and artificial intelligence training. However, computing power grew exponentially in this era. Cloud services are clearly the best solution. I'll just wait for the PC cloud service. At that time, I'll just knock over Apple like I'm going to run over Nokia.
冬の树 干练的佩恩 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")