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....
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For further details see:
Jack Ma's $50M Alibaba Buy Signals 'Buy China'