By Nigam Arora & Dr. Natasha Arora
The ETF of choice is KWEB. Both short term and medium term ratings are being upgraded to 🔒 (To see the locked content, please take a 30 day free trial). The long term rating is 🔒.
Chinese internet stocks have been decimated. By many measures, Chinese internet stocks provide a better value than US internet stocks. Of course, no one should underestimate the risk of China.
A Major Event
There is a major event that may change the sentiment towards Chinese internet stocks.
BABA is a Chinese e-commerce giant. People’s Bank of China (PBOC) has accepted the application of Ant Group to set up a financial holding company. Ant is a fintech giant and an affiliate of BABA.
From a macro perspective, the debacle in Chinese internet stocks started in November 2020 when Chinese authorities forced Ant to pull the IPO. The IPO was set to raise $37B and was set to be the world’s largest IPO listing. The trigger was a speech by the founder Ma accusing authorities of stifling innovation
The buy zone is 🔒. A wide buy zone is needed because of significant volatility. Consider scaling in. See the Trade Management Guidelines to learn about scaling in.
This post was just published on ZYX Emerging Markets ETF Alert.
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