Emerging Markets Guru Says 'Time To Go Shopping For Hidden Gems At A Steal' As He Sees Opportunities In Bruised Chinese, Hong Kong Stocks
Portfolio Pulse from Shanthi Rexaline
Emerging markets fund manager Mark Mobius sees investment opportunities in the underperforming Chinese and Hong Kong markets, comparing them favorably to India's recent success. He highlights criteria like return on assets and low debt for selecting stocks and believes Chinese investor confidence will return, boosting the markets. Mobius prefers individual stocks over indexes, especially in China and Hong Kong, despite their recent downturns. U.S.-listed Chinese stocks like Alibaba, JD.com, Baidu, and Tencent have been affected by regulatory pressures and market conditions, as have ETFs like the iShares MSCI China A ETF and iShares MSCI Hong Kong ETF.
February 14, 2024 | 8:45 am
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NEGATIVE IMPACT
Alibaba Group Holding Ltd. has been under regulatory scrutiny since mid-2020, affecting its stock performance.
Regulatory pressures and the overall downturn in the Chinese market have negatively impacted Alibaba's stock performance.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 80
NEGATIVE IMPACT
Baidu, Inc. is among the U.S.-listed Chinese stocks hit by regulatory actions and market downturns.
Baidu has faced similar challenges as other major Chinese tech companies, with regulatory pressures and market conditions affecting its stock.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 80
NEGATIVE IMPACT
The iShares MSCI China A ETF fell 0.42% to $24.88, reflecting the challenges in the Chinese market.
The ETF's performance is directly tied to the Chinese market, which has been underperforming due to various factors including regulatory pressures.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
The iShares MSCI Hong Kong ETF dropped 1.73% to $15.92, indicating market pressures in Hong Kong.
The ETF's decline reflects the broader challenges faced by the Hong Kong market, including investor confidence and regulatory issues.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
JD.com, Inc. has been affected by the downturn in the domestic Chinese market and regulatory challenges.
Like Alibaba, JD.com has been impacted by the broader market downturn and regulatory scrutiny, leading to a negative outlook on its stock.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 80
NEGATIVE IMPACT
Tencent Holdings Limited has experienced stock performance issues due to regulatory scrutiny and market conditions.
Tencent's stock has been negatively impacted by the regulatory environment and the performance of the Chinese market, similar to its peers.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 80