When Alibaba (BABA) fell by around 20% in a single day in mid-March, the Chinese Communist Party
could not let the drop continue. The Chinese government suggested that it will ease tough rules hurting
the technology sector. It will find ways to prop up the value of China-based tech firms.
Alibaba is the most popular e-commerce firm for U.S. investors. The former online retail growth star
reported a dramatic slowdown in sales in the last quarter. Investors may gamble on Alibaba returning to
its historical 48% sales growth rates in the future.
Expect BABA stock to cycle in the $99 - $120 range.
DiDi (DIDI) trades with daily swings in the 12% range. The Uber of China is still in the crosshairs of
Chinese regulators. The government will not likely permit DIDI stock to list on the Hong Kong exchange
yet. DiDi needs to satisfy cyber security concerns first. Before DIDI stock de-lists on the NYSE, the
company needs to meet China’s requirements for safeguarding user privacy data.
Once DIDI stock lists on the Hang Seng, the stock has a good chance of rebounding. Luckin Coffee fell
before the stock de-listed. Since its Hang Seng listing, shares rebounded.
Chances are rising that BABA and DIDI stock finally bottomed this time.
