Disclaimer:
As a person who lost $17k in BABA stock and still has $3k unrealized losses in Bidu, I would like to share my takeaways from playing with the chinese stocks.
- First thing first, control your positions. Don't let any 1 chinese stock oversize your portfolio
- Set a 30% stop trailing loss. Let them ride.
- If i were to do it again, I would buy qcom, sn and apple to enjoy the Chinese stocks frenzy. I would not touch a single individual emerging market stock, but I'd buy US tech stocks that have good Chinese market exposure. I should have bought qcom apple in 2021 to enjoy the ride.
- If you believe in china market, buy kweb, buy fxi, and don't overload A single chinese stock. It can have large amount of black swan risk, like baba did. You simply cannot predict if CCP will be monitoring a singke company or a few companies.
- Btw, i am not selling my baba and bidu stocks now. I still think they have legs even at this level $162, $125. I think Bidu has better values than baba. Baba is close to my 2021 sellinv price of $170. It shall go above than $170.
My loss in baba was overcome by nvda gains.
It's my one and only material loss on my journey as a hybrid investor.
SAFE way to play the China stock frenzy
byu/Apprehensive_Two1528 inStockMarket
Posted by Apprehensive_Two1528
3 Comments
Why are Chinese stock and ETF popping tho? I don’t see any catalyst
I also started buying BABA since around $250, continued to buy the dips to lower cost. I ended up invested 10x of my initial plan, and had my final buys around $80, and lowered cost to $120 (did sell some when there is a renounce, but then buy the dip when it starts to drop again).
I have sold 1/3 around $140-$150, and hasn’t buy any dip (unless it goes back to below $100). Will likely go continue to sell if it goes up, until I fully close the position.
Really bad experience and a good learning. I will never do it again…. Investing 10x of initial plan is really a bad idea…
Yeah, Chinese names can be a real minefield — the CCP risk premium is no joke. Safer way to get that exposure is exactly what you said: U.S. tech with China revenue streams or broad ETFs like KWEB/FXI. I’ve seen too many folks blow up going heavy on single tickers like BABA, risk mgmt > stock picking every time.