Ahh it’s that time of year to discuss Reddit’s favorite sector: Chinese equities.
Yes, if you bought during or before 2021 you likely are still down. However, if you held your nose and bought when it was trading at dirt cheap prices during Feb 2024 you’re probably pretty happy right now.
The best time to buy is when everyone says “this is Uninvestable.” For example, I think stocks like MOH and CNC could have a lot of upside, maybe some REITs like ARE or MPW have value too.
And yes, I am well aware of the VIE structure of the BABA ADR. It is certainly a risk, but all investing comes with risk, you just need to ensure that you’re well compensated for the risk you’re taking. If it scares you, consider FXI which owns shares on the Hong Kong exchange. Full disclosure I own that too, as well as TCEHY.
Next time someone on reddit says that you should avoid a heavily beaten down sector, consider buying.
Posted by Phuffu
10 Comments
ive been on KC riding the cloud boom, looking to get out soon
China is hot! I added TCEHY, BABA and PDD today. Added a few others about a month ago – CQQQ, DIDIY and GDS. Rets Go!!!
Bought at $70. That’s when people were saying it was uninvestable.
There is a sentiment shifting where China is more investable because the CCP is seemed like a stable actor that does and honor things that it promised where US is increasingly erratic in its policy. China will have a bull run going into the rest of 2026.
I’ve gotten BABA, BIDU, PDD, GDS, BeOne, Autohome in my wallet and I have very high expectations for each single one of these stocks. I also wanted to pick like 10 other chinese stocks but gave up to not spread my wallet too thin.
I also have Chinext and MSCI China A50 ETFs and they’ve been performing greatly so far.
China is bound to soon reach their 2020 stock levels, and go way beyond that. The CCP has stated they want their markets to be a favorable environment for investors and I’m buying that.
BABA nearly doubled in the past year. MSCI China IMI Index up 64% over the last year.
And in this case, it’s not because of a weakening USD. In fact, the USD/CNY is very slightly up over the last year.
i lost a bit at the top but sold it all, good call
then bough at the long bottom.
my bet was right. all on baba 0 on another chinese stock.
made 0 sense to buy baba and bidu
*”Ahh it’s that time of year to discuss Reddit’s favorite sector: Chinese equities”*
This sub won’t let that happen. Any post about Chinese stocks will be downvoted into disapperance.
If you want to make money, there are solid Asian companies out there, making money, paying dividends, growing double-digit every year, P/E below 20, up triple-digit over the last 1-2 years, but foreign stocks are not for those who fold under peer pressure because any price drop over 2% and this sub will only upvote “China bad, never bet against America, they killed Jack Ma or something”.
Thanks Trump’s tariff.🤪
Could you elaborate on your MOH and CNC thesis ?