Time for stock selection

Chinese tech stocks HS Tech Index increased 60% from August low, and the HS China Enterprises Index increased 40%.

It's time for selection of the laggers that are not so popular or fashionable. Stocks that offer growth, dividend yields, and intrinsic value, and are still undervalued in the lower interest rate environment with more cuts to come.

The Chinese authorities will announce more measures to recover the property sector. Such stocks are still very undervalued.

Tech stocks selection, when some are now already priced at high growth, is more difficult, having to predict the future prospects. The advancement of AI technology and cloud business in some stocks, lead to high growth in revenue and eps. For some, the price increase started in March due to reporting better quarterly results and prospects for growth.

Expect more announcements from Chinese authorities as US interest rates are lowered that affect the USD/CNY, and lead to more room to stimulate the Chinese economy.

The Chinese authorities are not giving up until the market, and the Chinese economy is in a sustained recovery. They are all in to crush the shorters and stop the short recovery cycles.

Foreign funds are rebalancing away from high PE markets to lower PE Chinese stocks. Chinese stocks are undervalued, and funds are flowing into ETFs and undervalued stocks, which will push up the Chinese stock prices.

The Chinese in the mainland and Hong Kong are gaining confidence in buying Chinese stocks to catch the uptrend.

The Chinese economy is improving, leading to better corporate reports and increasing stock prices.

This is the awakening of the sleepy bear to the - Roaring Dragon