Please ensure Javascript is enabled for purposes of website accessibility

Is It Too Late to Buy Chinese Stocks After the Huge Rally?

By Jose Najarro – Updated Aug 25, 2021 at 4:41PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Here is why numerous Chinese stocks were up over 10% in one day.

Today's video looks at recent news from the Chinese stock market and my thoughts from a bullish and bearish perspective on the stock price movements on Tuesday, Aug. 24. Here are some highlights from the video:

  1. Chinese stocks like (JD 6.69%), Alibaba Group (BABA 5.25%), and Tencent Holdings (TCEHY 2.94%) have rallied recently after seeing solid earnings and bullish purchases from known investors. 
  2. China's cyberspace regulators have caused much of the negative sentiment toward Chinese stocks in the past few weeks. Cybersecurity reviews by China's regulators have halted numerous Chinese public companies from accepting new users. On Tuesday, Aug. 24, China's cyberspace regulators laid out two main conditions for companies going public. The conditions have now removed a small portion of the cloud of uncertainty toward Chinese assets.
  3. Investors should remember that short-term volatility works both ways. An intense green day should not be a reason to invest in assets, and it is crucial to understand that risk and lay out a plan before investing.

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Aug. 24, 2021. The video was published on Aug. 24, 2021.


Jose Najarro owns shares of and Tencent Holdings. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd.,, and Tencent Holdings. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alibaba Group Holding Ltd. Stock Quote
Alibaba Group Holding Ltd.
$79.86 (5.25%) $3.98
Tencent Holdings Stock Quote
Tencent Holdings
$36.35 (2.94%) $1.04 Stock Quote
$53.25 (6.69%) $3.34

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.