Couldn’t happen to a more deserving set of folks… but I find myself wondering just “Why?”. They got just about everything they wanted. Usurper Biden as POTUS In Name Only (PotuSino). USA complacent and nearly paralyzed on the global stage. Africa theirs for the taking. Japan nearly in lockdown even with the Olympics as protests against it rage. Chaos seeded all over the world as they work to buy up assets at firesale prices, or buy up Government Political Offices at even better rates.
Yet their stock market is not looking so good. Makes a fella go “Hmmmm…..”
All the indicators say it’s in the toilet. Below PSAR (Periodic Stop And Release) or those little red dots. Fully inverted SMA stack (Simple Moving Average – longest duration on top lagging the decline). Volume peaked at the bottom in early 2020, calling the bottom, then was very low at the local top in Feb 2021, calling that top. Now it is dropping but without any bottoming spike in volume, so still a ways to go.
MACD (Moving Average Convergence Divergence) is “red on top” and “below zero” showing ongoing decline.
ADX / DMI is “red on top” but with the black ADX line still on the bottom says “trend to continue”. (note that in March 2020 it briefly crossed the blue line at the bottom, then in Feb 2021 it had pulled away hard from the red line indicating a top.
Yahoo Finance has a page about the tech sector (Bolding by me):
Down $831 Billion, China Tech Firm Selloff May Be Far From Over
Jeanny Yu and Abhishek Vishnoi
July 7, 2021·3 min read
(Bloomberg) — China’s technology giants have seen a combined $823 billion wiped from their market value since a February peak, with Beijing’s expanding crackdown on the sector fueling investor concern that the selloff is far from over.
Authorities on Tuesday issued a sweeping warning to the nation’s biggest companies, vowing to tighten oversight of data security and overseas listings just days after Didi Global Inc.’s contentious decision to go public in the U.S. That has put further selling pressure on China’s biggest technology names including Tencent Holdings Ltd., Alibaba Group Holding Ltd., JD.Com Inc., Baidu Inc. and Meituan.
“The selling will continue in the third quarter,” said Paul Pong, managing director at Pegasus Fund Managers Ltd. He says he sold two thirds of his technology stock holdings, including in Tencent and Alibaba, in May. “The measures from authorities will keep coming.”
The losses have come from 10 firms including three U.S. listed names. Didi’s ADRs fell 20% stateside on Tuesday, erasing about $15 billion of its market value.
China’s sweeping warning Tuesday followed the opening of a security review by the nation’s internet regulator last week into Didi and a demand for app stores to remove it. The move stunned investors and industry executives and has hammered the Hong Kong shares of peers such as Tencent — one of Didi’s largest backers.
Investors worry that the latest security-based probes have opened a new front in President Xi Jinping’s broader campaign against China’s internet giants that began in November with the collapse of Ant Group Co.’s mega IPO and subsequent antitrust investigations into Alibaba and Meituan. Over the weekend, China moved against two other companies that also recently listed in New York — Full Truck Alliance Co. and Kanzhun Ltd.
Investors are likely to take “a sell first, talk later approach” to limit policy risks in their portfolio, said Justin Tang, the head of Asian research at United First Partners in Singapore. Stock prices are likely to be driven by near-term sentiment swings as opposed to company fundamentals, Jian Shi Cortesi, a Zurich-based fund manager at GAM Investment Management, wrote in an email.
The Hang Seng Tech Index is down 31% from its February high. Investors in mainland China, who accounted for about a third of turnover in Tencent shares this year, turned net sellers of the stock in June.
Oh, right, when your “fortunes” depend on Government, you can have them turn in an instant if suddenly “out of favor with Dear Leader”… Perhaps USA based Government Teat Sucking companies ought to remember that too.
I don’t suppose a significant part of the world being PO’s at China and deciding to just not buy their stuff might have an impact… /snark;
Then there’s this:
Why New Oriental, TAL, and Other Chinese Education Stocks Crashed Today
Joe Tenebruso, The Motley Fool
Fri, July 23, 2021, 12:48 PM·1 min read
The Chinese government might tell for-profit education companies to become nonprofit organizations, according to a report by Bloomberg. The news led to a violent industrywide sell-off.
Here’s how some of the U.S.-listed Chinese educations stocks fared on Friday:
New Oriental Education & Technology Group (NYSE:EDU) was down 58%.
TAL Education Group (NYSE:TAL) was down 70%.
Youdao (NYSE:DAO) was down 42%.
Gaotu Techedu (NYSE:GOTU) was down 62%.
17 Education & Technology Group (NASDAQ:YQ) was down 39%.
The potential restrictions could prevent China’s currently for-profit education companies from raising capital in the financial markets or acquiring other businesses. Regulators are also expected to intensify their scrutiny of online learning platforms, as well as place an outright ban on tutoring services during the weekends and vacations.
When the government controls and runs your business, you do not have a business. You have a concession that can evaporate as soon as Dear Leader wants to squash you.
Me? NOTHING invested in China. Not going to either. Not going to buy their products. Not interested in the products of their “USA domiciled Chinese Owned businesses either”; such as GE Appliances (not the jet engine biz though) nor Smithfield Hams nor Ingram Micro nor AMC Theaters, etc. Yes those are fully owned by China, unlike the likes of Disney that are only sucking up to China with only 2 of their 6 theme parks majority owned by China…
IMHO, couldn’t happen to a more appropriate set of folks. Get Chinese Woke, go hard broke.
Were’s my money? About 95% in Real Estate. We’ll roll some of it into new property in the next few months, but in an inflationary environment, with $Trillions of debt overhang, and more on the way, and hyperinflation nipping at the heels, well, let’s just say things with interest rates and long holding periods or things with “money risk” are not of interest.