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

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

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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.com (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 JD.com and Tencent Holdings. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., JD.com, 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.

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Stocks Mentioned

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

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

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