Aenon
05-07
$Direxion Daily FTSE China Bull 3X Shares(YINN)$  

Why I’m Still Holding My China Tech Stocks: BABA, Baidu, Trip.com & Tencent (WeChat)

Last September, we saw a temporary spike in Chinese tech stocks—Alibaba (BABA), Baidu, Trip.com, and Tencent—driven by speculation around government stimulus. But valuations remain compelling:

• Alibaba (BABA): PE ~9x, still priced like a value stock despite strong cloud and international growth.

• Baidu: PE ~12x, with AI and autonomous driving as long-term catalysts.

• Trip.com: PE ~17x, benefiting from the travel rebound and increasing outbound tourism.

• Tencent (WeChat): PE ~15x (adjusted), with stable earnings and dominance in social, gaming, and fintech.

The recent economic easing measures announced by the Chinese government—including property stimulus, rate cuts, and support for tech innovation—could be the turning point. These policies aim to restore confidence and consumption, which directly benefit platform companies like these.

I’m holding not just for recovery, but for re-rating. When sentiment returns, fundamentals will drive upside

HKD Strengthens: Can China Stocks' Rally Continue?
On May 7, the Governor of the People's Bank of China, Pan Gongsheng, announced a 0.5 percentage point RRR cut, injecting approximately 1 trillion yuan of long-term liquidity into the market. A package of policies to support financing for SMEs will be launched soon. Chinese assets surged in response to these favorable policies. Some believe that Chinese concept stocks are still at low levels, as major tech stocks remain undervalued. Are you bullish on China stocks continued rally? Are they still undervalued or not? How will stronger HKD affect HK stock market?
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Comments

  • Valerie Archibald
    05-09
    Valerie Archibald
    Cooler heads will prevail. China will be the biggest beneficiary of tarriffs. $145Bil exported to the US will shift to the EU and the rest of the world. YINN is way underprice.
    • Aenon: 
      Agree. Along w my Alibaba that I started hodling


      Let’s see. Thanks 😊
  • Mortimer Arthur
    05-09
    Mortimer Arthur
    Looks like China is Booming!
    • Aenon: 
      Yeah it is… economy under rated. Operating really efficiently
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