Regulatory raids have torpedoed the Chinese tech trade.

Alibaba, Baidu, JD.com and Pinduoduo, some of the country’s largest tech companies, have combined lost more than $ 500 billion in market cap since their February highs as new antimonopoly and data security rules threaten to weigh on profits in China.

With Alibaba, Baidu and JD.com trading at significant discounts to their historical price-earnings multiples, valuations could look attractive to those willing to take the regulatory risks.

However, it pays to be selective in the group, JC O’Hara, chief market technician at MKM Partners, told CNBC’s “Trading Nation” on Thursday.

“If you look at a lot of these charts, they are in downtrends, and downtrends say to me, stay away,” he said.

One name that looked technically promising was JD.com, O’Hara said.

The stock has begun to stabilize after falling below long-term support at its 100-day moving average, initially leading to an …

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