Please ensure Javascript is enabled for purposes of website accessibility

2 Chinese Stocks to Watch During These Huge Volatility Swings

By Jose Najarro – Oct 13, 2021 at 10:30AM

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

In recent months, a lot has been pushing investors out of Chinese equities.

Today's video focuses on stock price action, valuation metrics, and recent news affecting Tencent Holdings (TCEHY -0.94%) and JD.com (JD 0.92%). Here are some highlights from the video. 

  1. JD's stock price is down over 25% from its all-time highs, and Tencent's stock price is down over 35% from its all-time highs. There are numerous reasons for the depreciation in stock price, including tensions between the USA and China, Chinese cybersecurity regulators, and Chinese government interference in Chinese companies. Regardless, there might be some hidden valuation gems inside Chinese equities. 
  2. JD.com continues to expand into new markets and products. In September, JD opened its first online store in Indonesia and launched physical stores and additional distribution centers in China to help improve its omnichannel retail experience. For the past year, JD has also focused on enhancing its telemedicine services, and on Oct. 8, it launched a telehealth service for pets. 
  3. Tencent's stock price has taken a hit due to stricter restrictions on minors in China, specifically on how much they can play video games during the week. Tencent also owns numerous social platforms that could be potential targets for Chinese cybersecurity regulators. At the same time, investors should be aware the gaming regulations are not new in China, and minors in China were already under strict gaming limitations. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Oct. 8, 2021. The video was published on Oct. 8, 2021.
 


 

Jose Najarro owns shares of JD.com and Tencent Holdings. The Motley Fool owns shares of and recommends JD.com and Tencent Holdings. The Motley Fool has a disclosure policyJose 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.

Stocks Mentioned

Tencent Stock Quote
Tencent
TCEHY
$38.92 (-0.94%) $0.37
JD.com Stock Quote
JD.com
JD
$59.18 (0.92%) $0.54

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

Related Articles

Premium Investing Services

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