Chinese stocks are under pressure…What are your thoughts on DIDI Global? #investments
I bought at the end if day 1 of listing surprised it didn’t move much. At the end of day 2 it was up by 16% plus THEN the news of Chinese crackdown came out so expected to lose a lot next day. Day 3 in the morning all I saw was about 5% down. Super surprised at lack of reaction I SOLD. Netted some 10%+ returns in one day but got lucky. Why I sold? 1. My thesis did not expect Chinese regulators to crackdown as I thought with all going over last few months, this would have already happened BEFORE the listing if DIDI. So that put a major hole in my thesis and didn’t know what would be the outcome. 2. China since then has continued to take stronger actions on major tech, ed-tech companies. With one order they pretty much distorted Ed-tech business.(GOTU, EDU etc). Who will be next is anyone’s guess. 3. In last 6 months China already had proven that what these companies’ annual report or S1s says is irrelevant as business models doesn’t matter, doing what Chinese government wants is all that matters. SO with that, it is absolutely clear that as an American investor, you will have no idea over how to value or look at growth potential if any Chinese company irrespective of its price movement, which means you should not buy. Now, if you really want to play roulette go in Chinese EV, China wants to develop hard tech - but again, your mileage will be as far as Chinese government and regulators will allow you to go. I would rather focus on digital currency/payment, autonomous, EV and other revolutions taking place in US.
The Chinese govt has an agenda to mess up Chinese companies and prevent them from getting too big. I'd stay away from the Chinese stocks
All in no brainer. Thank me later
I hope people did not follow your advice here.
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Never should have bought in the first place. It took less than 24 hours after ipo for pooh bear 🐻 to mess it up.