One of the Best China Based Stocks, Alibaba!

  One of the Best China Based Stocks, Alibaba! Although Hundreds of Chinese Companies Are Traded in the US Markets, Alibaba Is The Only Share That Holds An Important Place. With its thriving urban middle class, China is the world's most populous country and second largest economy. A number of China Stocks stand out from the rest and are among the top performers. Alibaba (BABA) comes first among these shares.

Risks of Owning a China Stock

Investors need to be aware that investing in Chinese stocks carries significant risks. Authoritarian government regulators can push companies through extensive restrictions, bans and fines. Ant Group suspended its IPO after Chinese regulators clashed with Alibaba at the end of 2020. As is known, China fined Alibaba $2,8 billion and ordered it to change various practices. At the end of April, he also ordered several major internet companies, including Tencent, to cease providing financial services.

Although Hundreds of Chinese Companies Are Traded in the US Markets, Alibaba Is The Only Share That Holds An Important Place.

Meanwhile, a new US law could force Chinese companies to exit US markets. Despite everything, this situation can be avoided with positive negotiations between Washington and Beijing.

Stock Market Trend Switch

Investors should follow the general stock market trend and add risk to their investments with bullish confirmations and go all cash in bear markets.

Basic Ingredients

It is necessary to focus on good stocks, not just any Chinese company. To illustrate, IBD's CAN SLIM Investment System has a proven track record of performing very well in the S&P 500. It's also worth investing in stocks that have at least 25 % earnings growth for the last quarter and year.

Conclusion

Good to start with companies with strong earnings growth like Alibaba stock! Footnote: It should not be forgotten that Chinese stocks have fallen into disrepute for most of 2021 in America. Chinese stocks listed in the US did not perform well overall.    

Source: https://www.investors.com/

 

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