Chinese concept stocks mainly refer to Chinese companies listed on the U.S. stock market, which currently have hundreds of companies with a market value of more than US$1 trillion, and are an important part of the U.S. stock market. In recent years, due to the deterioration of Sino-US relations, including the superposition of multiple factors such as the first war, financial war, and science and technology war, investors are not optimistic about the future of Chinese concept stocks, and even the future of China's economic development.
But today, is the Chinese concept stock in the end, is it a good opportunity now, and is there any hope for the future or reset?
In my opinion, Chinese concept stocks are indeed a good opportunity to the first, although it may not rise immediately, but the probability of upward and downward probability has been seriously unequal, in the case of this risk-return ratio, if you dare not invest, you should basically say goodbye to this market.
On the one hand, the Sino-US economic war has been clashed several times, although both sides have been seriously damaged, but it has not shaken the fundamentals, China's economy is still quite capricious, especially those Chinese concept stocks, the performance of the impact is not great, or even no impact, this is the value, but the stock price has been overfalling, the valuation is seriously unreasonable, there is a need and necessity to repair. Especially compared with other U.S. stocks in recent years, the trend is good, which strengthens this confidence.
On the other hand, the problem of fraud in Chinese concept stocks, which was strictly investigated before, has proved to be a very rare phenomenon and a common manslaughter, and the matter itself is not so serious, and the quality of Chinese concept stocks can still stand the test. There are also data security issues that are both involved in the SEC and the China Securities Regulatory Commission, which are increasingly becoming an obstacle. Therefore, from this point of view, there is also a need and necessity for the repair of the Chinese concept stocks that have been mistakenly killed before.
On the other hand, the U.S. interest rate hike cycle is basically over, and markets outside the U.S. will breathe a sigh of relief, and funds will flow back to these markets and companies listed outside the U.S., including Chinese concept stocks.
Therefore, the next step of Chinese concept stocks will usher in a valuation repair and a wave of **, which is an excellent investment opportunity.