PDD - Chinese Internet Stocks: Bulls Thrashed But Hold The Schadenfreude

• Watching the Afghan government giving way when the Taliban effectively took control of the capital led me to see the parallels with the spectacular fall in the Chinese internet space.
• While frightening, the crackdowns by Beijing seem to favor the incumbents and facilitate greater consumer spending, benefiting Alibaba Group, Meituan, and other online platform businesses.
• The delisting threat on Chinese ADRs could go down a notch as the Chinese authorities promised to work on promoting audit and regulatory cooperation between China and the United States.
• Chinese brands are gaining global esteem, helping Chinese internet companies to double down on their global expansions to counter the headwinds in their home market.
• It is tempting to cut loss for those still holding. However, with the stocks having fallen this much, seeing them rebound after our capitulation will also be a highly unpleasant outcome to bear.

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