Asian tech stocks rally… time to buy?





Perhaps you’re not familiar with the leading Asian tech stocks. Alibaba, Baidu and NIO may not be household names to Western retail investors. Think – Amazon, Google and Tesla… these are the Asian equivalents.

Alibaba, Baidu and NIO have secondary listings in New York, as well primary share listings in Hong Kong, meaning traders around the world can buy and sell shares.

Chinese technology stocks are in focus this morning after rallying hard in Hong Kong. Alibaba (+24%), Baidu (+20%) and NIO (+27%) have posted huge gains this morning, resulting in the Hang Seng recording best daily gain since 2008.

Today’s gains fail to tell the full story. For example, Alibaba shares have fallen 78%, from $332 to $72, in just over 4 months due to a combination of profit-taking, China and US regulatory intervention, rising interest rates, conflict in Ukraine and soaring covid cases in China.

Is this an opportunity to buy shares in some of the biggest global tech names?

At the current price, Alibaba’s market capitalisation is still greater than HSBC, Barclays, Lloyds and Natwest combined!

“US and Chinese technology stocks are trading at prices too good to pass up. Much of the negative news impacting the sector is in the price”.
Marc Kimsey, Frederick & Oliver

In recent days, Marko Kolanovic of JP Morgan, Peter Oppenheimer of Goldman Sachs and billionaire investor, Kevin O’Leary, have turned bullish on equity markets. O’Leary described Alibaba as an “opportunity too good to ignore”.

Will the rally continue? Will you buy technology stocks at these depressed prices?

At Frederick & Oliver, you can buy positions in stocks such as Alibaba, Baidu, NIO, Amazon, Google and Tesla for 20% cash outlay. That’s right, you could buy a $10,000 position for $2,000 or a $100,000 position for $20,000.

For more information call now on 020 8054 7901.

By Marc Kimsey

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