That’s the view of Tony Roberts from Invesco Fund.
Interviewed this week Roberts was reported via Bloomberg as saying that China’s big tech companies like Alibaba and Tencent are ‘just too cheap’.This call comes as the latest Chinese export data shows an unexpectedly large fall of 7.5% y/y prompting hopes of more stimulus from the People’s Bank of China via a rate cut
Alibaba Group is a multinational conglomerate and one of the world’s largest e-commerce companies, based in China. The company was founded by Jack Ma in 1999 and has since grown to become a dominant player in various sectors of the digital economy.
Is China about to get some extra stimulus from the People’s Bank of China? If it is could Alibaba shares find a sudden gain? Seasonally Alibaba shares have a stronger period ahead. Over the last 8 years Alibaba has gained an average of 5.84% from June 02 to July 21.
So, will we see Alibaba gains on hopes of China stimulus as we head into the weekend?
Major Trade Risks:
The biggest risk here is to do with the recovery of China’s economy. A slower than expected pick up could continue to disappoint analysts.
Remember, don’t just trade it, Seasonax it!