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
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