$百度 (BIDU.US)$$阿里巴巴 (BABA.US)$$腾讯控股(ADR) (TCEHY.US)$$虎牙 (HUY...

$百度 (BIDU.US)$ $阿里巴巴 (BABA.US)$ $腾讯控股(ADR) (TCEHY.US)$ $虎牙 (HUYA.US)$ $斗鱼 (DOYU.US)$ 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?