MCHI - Chinese Internet Stocks: Death By A Thousand Cuts
- Chinese financial markets started the week on a positive note with a RRR cut and trade data that beat expectations again, stunning those who viewed China through gloomy lens.
- Market players appeared to be relieved the Sword of Damocles had finally fallen and China's 'Lehman moment' did not materialize.
- Several readers joked that my "capitulation" as captured in last week's update induced the powerful rebound in BABA stock.
- While sentiment has been so bearish that a little good news can spark a rebound, there is still no guarantee BABA stock will benefit from its upcoming Investor Day.
- It's just not possible to fight the negative narrative if the majority have selection bias. Can Alibaba's senior management restructuring be a game-changer?
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Chinese Internet Stocks: Death By A Thousand Cuts