Today, Chinese Technology Stocks Started to Slip Again!-Alibaba!

  Today, Chinese Technology Stocks Started to Slip Again!-Alibaba! Shares of Alibaba, JD.Com, and Full Truck Alliance Drop This Morning.  

What Happened

  Chinese tech shares fell for the third consecutive session on Tuesday amid continued pressure from the government on the nonprofit education sector. Curiously, Chinese tutoring stocks, such as New Oriental Education Group and TAL Education Group, which had lost value in the last two days, soared today as some investors took the opportunity to buy in. However, major tech stocks such as Alibaba Group Holding 9988 (HKG) HK$183,20 +3,30 (+%1,83) continued to slide today as investors went on sale amid lingering fears of imposing restrictions on large businesses in China. This stock, which had a sharp decline in the morning, recovered a little in the following hours.  

So what

As if the concerns on the Chinese regulatory front weren't enough, both Alibaba et al. were lowered to sell this morning by DZ Bank in response to pressure on Chinese stocks. This year, Alibaba was fined $2,8 billion as a result of an anti-monopoly investigation into the e-commerce giant. Altogether, all these events created a climate of distrust among investors who believed that the pressure in China would increase or make American depository stocks worthless. However, this seems unlikely. Despite all these disadvantages at least one analyst said the sale was an opportunity to buy those shares.

Today, Chinese Technology Stocks Started to Slip Again!-Alibaba!

Mizuho Financial Group 8411 (TYO) ¥1.578 -2,00 (-%0,13) said that the pressure in the education sector will not spread to other sectors. He also said that growth in Chinese internet stocks "remains solid". Another factor affecting these stocks is that big investors are returning from China on the news. That's why investors outside of China began selling Chinese stocks on Monday, according to Bloomberg.

Now what

Investors avoiding China because of unforeseen government risk doesn't mean these stocks won't bounce back, even if they feel they're right. Alibaba is the world's largest e-commerce platform with gross product volume exceeding $1 trillion, and JD.com is China's largest direct online seller and has built a logistics network that rivals Amazon. It should not be forgotten that Alibaba is the world's largest e-commerce.

Today, Chinese Technology Stocks Started to Slip Again!-Alibaba!

 

Source: The Motley Fool

 

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