$阿里巴巴(BABA)$ To be honest, I do hope that Chinese stocks listed in US can take a breather and reestablish the ascent again as people would know that I have a position in Huya $虎牙(HUYA)$ , which is acquired at an average cost at 20% below the November 2020 Huya's price. However, recent concerns over Chinese regulations and just continued dumping of Chinese shares (ADRs) by funds like that of Cathie Woods have led to a rapid decline of the share price.
Looking at Alibaba's price chart, its decline started even earlier since its peak was in November 2020, which was like 2 to 3 months ahead of the price peak by other Chinese stocks listed in US. Well, indirectly as the cause I feel, the decline of Alibaba is not over yet given the current price structure of Alibaba.
A quick look of Alibaba's 2Q2021 reveals one key takeaway that accelerating revenue growth comes at a lower margin due to the consolidation of physical stores business, i.e. Sun Art:-
http://www.sunartretail.com/en/business/business.php
I would use Alibaba's price chart to gauge when the panic of Chinese stocks in US is over. In any case, besides Alibaba, $腾讯控股(00700)$ Tencent could be another barometer for me to follow.
Question to ask is if Alibaba's phenomenal growth is coming to an end and slower growth is expected. Will Alibaba have to acquire more businesses to push up its revenue growth? Recent saga over one of its staff's accusations also brings my attention to whether Alibaba's market position is under a threat. But who can say for sure since I am not based in China. It would be best for readers to follow the official news for insights into this case as I do not have any insights into this. All I can say is that the current saga is still an online news, which is yet to be verified.
Given the short and longer time frame price mvoement, I will not be surprised if Alibaba moves down another leg down to 160 to 165 USD.
In comparison, Xiaomi's price structure is relatively resilient for the last few months due to the improving market position of $小米集团-W(01810)$ Xiaomi. However, given short term worries of Chinese regulations, no one can say for sure Xiaomi's exact share price movement in the short term.
As always, the above should not be construed as any investment or trading advice.
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