China market is not crashing as the rumours say !I know the recent news from China on clamping down the Chinese Tech stocks have hit some of the stocks like Alibaba, Tencents, Meituan, Didi, etc hard.
If you are a short term trader ,then either you find shorting opportunity or you won't be too happy with going long. However, if you are hold a long term view on China market like me, then this news is GOOD NEWS as it brings down the prices of these great fundamentally sound companies to a more affordable price. I can buy it cheaper than before.
China is currently underperforming compared to US market where the earnings have scored a wide margin this year , thus bringing the S&P500 and the other indices to a new high.
Well, I could be wrong but I am betting that the 2nd half of the 2021 market may give China stock market a boost while US market is likely to undergo some correction. Why ? Inflation is a big issue that the FEDs are concerned about. They have to step in sooner than later to raise interest rates or cut down or their bond purchase program.
Now, if my prediction is right, then now would be a good time to enter the China stock market, both indices and fundamentally strong stocks.
