I sold the China stocks as well and put half of it into NFLX. I’m debating what to do with the other half. The small caps have had a nice pull back, so I may add to those positions.
No wonder China stocks have been declining over the last few months.
Guess the fundamental reason to sell is Xi Jinping.
In USA, shouldn’t we sell also because of Trump?
Trump doesn’t have as much power as Xi, so he can’t do as much damage. If you can’t read chinese I think you shouldn’t invest in chinese stocks. There’s so much the western media doesn’t cover.
For example Beijing recently accounced a “tax cut” which’s actually a tax hike for most firms and people. Watch the video below. In Chinese though.
Alipay and cloud computing will be the main growth cannons.
Alibaba remains one of the best Chinese picks, maybe I’ll add it to my ultra-long-term wallet.
Not sure about Alipay. WeChat pay seems to be better. This guy also think "Alibaba has become a spindle of the Chinese economy and outside.”
The Chinese e-commerce giant is shifting to other booming businesses like cloud computing and media. Note that these new segments now have a negative contribution to the overall free cash flows.