KEJI - Jack Ma's $50M Alibaba Buy Signals 'Buy China'
2024-01-28 06:42:47 ET
Summary
- Jack Ma bought $50 million worth of Alibaba shares in recent months. Chairman Joe Tsai bought $150 million worth, bringing total insider buys to at least $200M.
- The buys triggered a rally in Chinese internet stocks.
- They signalled a shift in the perception of risk in China, showing that Chinese "smart money" see the nation's equities as undervalued.
- China's macroeconomic indicators, along with its companies' financial strength and cheap valuations, suggest that Chinese companies are worth buying today.
- In this article I explain why I continue holding Chinese shares despite the perception that China is an extremely risky market.
This week saw a rally in Chinese internet stocks following months of losses. On Monday, news broke that Jack Ma and Chairman Joe Tsai had been buying Alibaba ( BABA ) stock–$50 million worth for Ma and $150 million worth for Tsai. The vote of confidence from insiders lifted the stock, which rallied Monday, Tuesday and Wednesday before giving up some of the gains on Thursday....
Jack Ma's $50M Alibaba Buy Signals 'Buy China'