Chinese stocks experienced a significant drop, but experts view it as a buying opportunity

From Nasdaq: 2024-10-08 13:41:00

1. China’s announcement of a stimulus package sparked a major rally in Chinese equities, with stocks like JD.com and Futu Holdings surging over 50% in the past month.

2. Chinese stocks saw their worst day since the Financial Crisis, with a 9% drop in the iShares China ETF (FXI) representing the most significant single-day decline in years.

3. Despite the recent pullback, investors are advised to view it as a buying opportunity given the context of a mega short squeeze and attractive valuations.

4. Alibaba’s consistent buybacks totaling over $4 billion in Q3 have been a key bullish catalyst, with expectations that they will resume as Chinese equities dip.

5. Chinese equities remain historically cheap, with Alibaba’s price-to-sales ratio only at around 2x, making them an appealing investment even after the recent short squeeze.

6. Experts have identified 7 elite stocks as the best investment opportunities for the next 30 days, with an average yearly gain of +23.7% since 1988.

7. For more detailed analysis and insights into Chinese stocks and potential investment opportunities, visit Zacks.com.



Read more at Nasdaq: Chinese Stocks Slump: Time to Buy the Dip?