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3 Chinese Stocks Are Down Big. Is It Time to Buy?

By Jose Najarro - Apr 8, 2021 at 12:50PM

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We recently saw a big sell-off in some Chinese stocks. Is this a buying opportunity for investors?

In today's video, I look at why Chinese stocks are down big. The main culprit for the sell-off today was Prosus (PROSY -0.31%), with its intention of selling some of its position of Tencent (TCEHY -1.38%). Prosus is currently the biggest shareholder of Tencent, and the sell-off triggered a red flag for investors. Since there have been no fundamental changes to Chinese stocks, this event might be giving investors a chance to enter the Chinese market at a discount.

3 Chinese Stocks Down Big

  1. Tencent is a tech giant in China. It has holdings in numerous companies hitting different markets, including social, gaming, fintech, and online advertising. Tencent's stock price is down 7.5% for the day and over 20% from its six-month all-time high.
  2. Huya (HUYA 1.21%) is one of the top e-sports live-streaming platforms in China. Huya's stock price is down 4.46% for the day and over 40% from its six-month all-time high. 
  3. DouYu (DOYU -6.21%) is a competitor of Huya's, and there are talks about a merger between the two, but it needs to be approved by regulators. Doyu's stock price was down 2.35% for the day and over 40% from its six-month all-time high. 

Click the video below for my full thoughts. 

*Stock Prices used were the Midday prices of April 7, 2021. The video was published on April 8, 2021. 

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Stocks Mentioned

Tencent Holdings Limited Stock Quote
Tencent Holdings Limited
$44.25 (-1.38%) $0.62
HUYA Stock Quote
$4.20 (1.21%) $0.05
UP Fintech Holding Limited Stock Quote
UP Fintech Holding Limited
$3.86 (-3.98%) $0.16
DouYu International Holdings Limited Stock Quote
DouYu International Holdings Limited
$1.36 (-6.21%) $0.09
Prosus N.V. Stock Quote
Prosus N.V.
$9.62 (-0.31%) $0.03
Sea Limited Stock Quote
Sea Limited
$79.66 (3.60%) $2.77

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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