Dear readers, I believe it is time to stay away from Chinese stocks. Specifically, Chinese stocks listed on the US stock exchange and stocks listed on the Hong Kong stock exchange. And I believe if you have read the stocks news, you would know that my suggestion is underpinned by the recent developments:
First, a bill that could delist Chinese companies from US stock exchanges: this has caused the share prices of Chinese companies listed on the US stock exchanges to head south. The stock prices of top-tiered Chinese stocks like AliBaba, Baidu, Tencents and JD were not spared. The proposed US bill came on the heel of the collapse of Luckin Coffee stock which has sank from a high of USD $50 in early January this year to less than USD $2 now.
Second, the move by China to introduce the Hong Kong Security bill. This has caused the Hong Kong Hang Seng Index as well as Hong Kong stocks to head south. Here in Singapore, Hong Kong-related stocks like Hong Kong Land have also sank along with the news.
I believe it is time to stay away from Chinese stocks right now and to take note of the developments next. There could be opportunities to buy some really good Hong Kong stocks and Chinese stocks at a later time but let us assess the situation going forward first.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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