TCTZF - Tencent: It's A Bargain!
2024-01-30 11:02:53 ET
Summary
- The Chinese bear market is continuing to be painful for investors, but this is no reason to sell Tencent - it is rather a reason to accumulate.
- Tencent still has a wide economic moat around its business based on network effects and the company is still growing with a solid pace.
- Despite China facing problems, I see Tencent almost 40% undervalued at his point.
It seems like investors in Chinese equities can’t catch a break. While the S&P 500 ( SPY ) is basically trading at all-time highs (once again), the Chinese stock market is continuing to decline. The Hang Seng index lost almost 50% since its temporary high in 2021 (its all-time high was in 2018 and we can argue that the Chinese stock market is in a bear market for more than 5 years)....
Tencent: It's A Bargain!