Dude, it’s got nothing to do with the floods in Henan la. It’s the US media and in general US based investors getting pissed and now accepting the fact that Chinese stocks listed in the US are not really fairly traded in the US market, mainly due to the aggressive influence of CCCP. It’s all stemming back to the free trade and trade war balance / imbalance of years past. This is brewing up and many of us retail investors simply don’t know where to run. Damned if we sell, damned if we hold, and potentially damned if we buy.
I mean I dare to say even if ALL Chinese tech stocks release super good news, won’t do much good right now. It’s gone beyond the tipping point. Expect another proper 20 to 50 % haircut.

This post has been edited by lee82gx: Jul 24 2021, 01:00 PM

Ohhh, I see. Yes, the news of the day definitely get overshadowed by the floods for sure. But Chinese PE are all low leh?

As far as I remember in recent memory, Covid, Trade wars, Sub prime and Dot Com bust are the major drops in the last 20 years. I'd say its kinda robust.

if, vxus does not have a lot of 10C, BABA, MEITUAN, PDD, I would be sooo surprised. hahaha

interestingly, no. (I checked)

That is in other words communism. One can not imagine every single US VIE listing doing something wrong in the eyes of the CCCP all within 1 year. And it is the opposite of capitalism. If so, one should not participate in a communist scheme assuming it will turn out capitalist.

This post has been edited by lee82gx: Jul 27 2021, 10:14 AM

I dont expect China to be democratic anytime soon. But don't confuse democracy with capitalism (which to a certain extent we fully expected when you publicly list a company). Perhaps the whole world got confused except Emperor Xi.

Put it this way, if EVERYTHING goes along with CCCP plans for a 1000 year reich of the Communist party - where would you and I be? How would your capital and my capital grow? Will the rich be richer, will the opportunist capitalist become rich? Will there be a Buffet coming out of China? It seems NO at this point. For good or bad, if you listen to CCCP it is for greater good of Mother China. But for you and I?

I can tell you, I will be super cautious. I think PE ratios for Chinese companies under communist rule should be around 5. That is if they take my money as capital to do more business they better repay me in 5 years.

Yeah, I'm out.

I will question whether the things they sell are worth 50% off or not. Perhaps a competitor has come in at better quality at 30% of the original prices.

another thing, buying for consumption is not so complicated. you get 10 maggi for the price of 20, you still get full for 10 times. But if you are investing, you better be sure the thing you buy will appreciate in price, compared to the price you paid for. And that, is never by just looking at the "current price" or even "current value". It is always what you think you can sell it for in certain amount of time in the future.

i withdrew 2 months ago to buy house. I will come back in later, but at current state I'm definitely going to DCA.

i think fundamentals HAVE changed.
Look at EDU and TAL. Change from Profit to non-profit !
Look at tencent being stopped from having exclusive music rights to. Cannot release a particular game if CCCP does not like it. Cannot invest in a particular start up if CCCP does not like it.
I dare say DIDI being stopped from active download due to "privacy concerns" is bogus too.
At the moment I dare say, they may end up saying JD is overcharging the sellers for fees to list their sales in the platform!
Many communist practice being enforced on public listed companies.

Perhaps only ANT being stopped from farming out loans is a wise fiscal policy.

All this equates to CCCP messing with the company's earnings, potential earnings, growth forecast, competition, IE capitalist practice.
End of the day how will you value a company's worth and potential worth if any given day any, Xi can trample the company's profitability.

I respect your reply, it is valid. But I personally think they overdo it this time. Perhaps to generate a bigger discount, who knows? But my sifu say don't buy what you don't know.

with regards to each particular individual stock - example BABA, I agree, most of them if use regular valuations will appear cheap. Perhaps call that rational.

Now the question is, you still need time to recover your investment. Even in rational investor will ask you to DCF to provide a return. And this requires assumptions to be made on growth, cash flow, dividends or earnings retained into the future. You buy the stock today with expectation that in the future it is worth more through retained earnings or dividends paid over time.

The big cloud that is suddenly rendered is no one can say 5 years later BABA can become a non-profit material distribution channel or not? Like a sort of Telekom Malaysia, being battered by Gobind Singh. Didnt we clap and rejoice when that happened? To most it is a wonderful thing to have cheaper, more accessible Internet. Wouldn't it be wonderful if Taobao forever only collects a fixed minimal fee to all sellers or whatever grand scheme CCCP can come out it with, for the greater good of the Chinese people?

But to the investor, see the stock price. Now apply to any or all Chinese public listed company. That is my personal context, not investment advise.

Lol. Buy the dip

10% means there is 1% chance that you have 10% loss of your capital in 1 year.

The projected returns are calculated and shown in the stashaway website, you can check.

Not to belittle you, but the actual returns maybe a lot less than what you imagine. Especially if you suffer 10% loss for 3 years in a row, and 10% gains for 3 years in a row.

Exactly.

StashAway simple is a cash management fund. You do get returns but there is no capital protection. In my own history of investing in money market fund, it has not lost capital yet. It’s been decades. But the returns are not guaranteed.

It’s purpose is not so much for capital appreciation but just as a temporary deposit for investing in other things. Or to cash out from selling your other securities.

In investment, sometimes not making a return is a loss in itself, so you need to understand principles of risk vs reward and opportunity cost. The answer to your question is you gotta be more informed before buying something.

If you are lazy, then no one can help you. Its like learning to swim online.
No, many here who are successful actually have plenty of avenues to invest, including brokerage accounts to go for individual stocks, and even options, futures trading.

Another extreme example is using the Simple, which is actually classified as parking facility - yes, like parking your car in the parking lot while the operator pays you some money for the temporary use of your car. It can crash or suffer some dings, but usually it works out beneficial for both parties.

But ultimately your car (or your cash) if you park it there permanently will only ever get the 2.4% at most. If that is your idea of comfortable return then by all means go for it.

For most of us, it is just a side benefit while DCA or cash out from broad based ETF investment, which in the past can be from negative to 17-20% per annum returning.

not only is it inevitable. It is continuous.