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Relief Rally For Chinese Tech

Chinese tech stocks are finally catching a bid after months of value-destroying regulations

This story originally appeared on Zacks

Chinese tech stocks are finally catching a bid after months of being hammered to the core by a tidal wave of value-destroying regulations. Xi's increasingly autocratic communist regime has been reigning in its tech giants since Jack Ma's public criticism regarding "The Party's" financial structure last fall.

- Zacks

US investor's favorite Asian innovators like Alibaba BABA, JD.com JD, Tencent TCEHY, and Baidu BIDU had lost 45%+ from their 52-week highs to close out last week's volatile trade. This bucket of foreign equities is finally finding footing this week after hitting oversold RSIs levels and reaching fire-sale valuation multiples.

BABA is finding itself at the top of this new wave of retail trader's idea generation cycle on Reddit's r/wallstreetbets (aka WSB). BABA has been the most talked-about stock of this market-moving trading forum, making up 8% of the message board's diverse comment volume in the last 24 hours.

You can see these young retail speculators pile into short-term call options, with 100,000s of Friday expiring calls changing hands in today's action. BABA's colossal $420+ billion market cap will hinder this group of traders' market-moving ability, but it's still a good sentiment indicator.

Tech IPOs With Massive Profit Potential

In the past few years, many popular platforms and like Uber and Airbnb finally made their way to the public markets. But the biggest paydays came from lesser-known names.

For example, electric carmaker X Peng shot up +299.4% in just 2 months. Think of it this way…

If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November.

With record amounts of cash flooding into IPOs and a record-setting stock market, this year’s lineup could be even more lucrative.

See Zacks Hottest Tech IPOs Now >>

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Baidu, Inc. (BIDU): Free Stock Analysis Report


Tencent Holding Ltd. (TCEHY): Free Stock Analysis Report


JD.com, Inc. (JD): Free Stock Analysis Report


Alibaba Group Holding Limited (BABA): Free Stock Analysis Report


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