From MarketBeat: 2024-06-17 07:12:32

1. Recent dip in Chinese stocks has investors wondering if it’s time to buy or stay away. MSCI China Index surged 20% from lows but fell due to new EU tariffs on Chinese electric vehicles. U.S.-listed stocks like JD.com and Alibaba have seen significant declines.

2. Asian stocks declined on Friday, driven by cooling U.S. inflation and EU tariffs on Chinese EVs. Shanghai Shenzhen CSI 300 and Shanghai Composite indexes dropped. EU’s tariffs raised fears of retaliation from Beijing, potentially straining global relations further.

3. Tepper and Burry have increased stakes in Alibaba and JD.com, showing confidence in the companies. Tepper made Alibaba his top holding, while Burry raised his stake in both companies. Despite market downturn, these investors believe in long-term potential of the Chinese stocks.

4. JD.com and Alibaba face challenges amidst market volatility. JD’s stock has attractive value metrics but needs to reclaim the $30 level for a turnaround. Alibaba analysts forecast a 48% upside, but the stock is trading below major moving averages, lacking bullish signals.

5. The recent dip in Chinese stocks may signal a buying opportunity, but the lack of bullish technical signals suggests caution. Investors should await clearer signs of stabilization before considering Alibaba and JD.com. Current market conditions indicate better allocation of capital elsewhere for now.



Read more at MarketBeat: Chinese Stocks: Buy the Dip or Stay Away?