From hero to zero, Alibaba founder Jack Ma’s fall from grace has been nothing short of spectacular. In October 2020, Jack Ma, blasted Chinese financial regulators for stifling innovation at the Bund Summit in Shanghai. The criticism did not go down well with the Chinese authorities who subsequently launched a slew of regulatory crackdowns targeting Chinese tech stocks. Since then, Alibaba share price (HKEX: 9988) had endured a torrid run.
The collapse of Alibaba share price (HKEX: 9988) has caused plenty of heart pains for investors. Numerous investors had entered this counter when Alibaba share price (HKEX: 9988) was trading between HK$150 to HK$298. Given that Alibaba share price (HKEX: 9988) is currently trading at about HK$80 bandwidth, the rout had been pretty devastating for investors. The question now is whether recovery is in sight for Alibaba share price (HKEX: 9988).
Many investors had been buying on the dip – buying more shares as Alibaba share price (HKEX: 9988) continues to plunge. Although such strategy is not unsound, many investors are starting to panic as there is no sign of bottoming of share price. And what if the end-point for Alibaba share price (HKEX: 9988) is HK$1? That would be an absolute nightmare!
The prevailing negative sentiments on Chinese tech stocks are driven mainly by macroeconomic growth of China, geopolitical concerns and regulatory clampdowns. As such, business fundamentals are completely irrelevant for Chinese tech stocks like Alibaba share price (HKEX: 9988). From this perspective, recovery of Chinese tech stocks will depend largely on these factors.
In recent days, Alibaba share price (HKEX: 9988) has stabilized somewhat after reports of Chinese’s intentions to roll out policies to support the economy and stabilize consumption gave investors glimmers of hope that the slew of regulatory clampdowns may be finally over. Nonetheless, investors could be forgiven for being sceptical as Alibaba share price (HKEX: 9988) had endured so many false dawns for the past two years. In this article, I will share my insights on the outlook for Alibaba share price (HKEX: 9988) in 2022.
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in Alibaba before. Whether Alibaba share price (HKEX: 9988) will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.
Pandemic to the rescue for Alibaba share price (HKEX: 9988)?
The clampdowns on Chinese tech stock were triggered by Alibaba and the whole saga took place in the midst of the pandemic. Despite the protracted pandemic for the past two years, the Chinese authorities had not relented on their intentions to rein in the Chinese tech giants until recently. The key reason for the softening of the regulatory stance may be due to the [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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