Speaking with CNBC, the CEO of the financial services firm TD Ameritrade Christopher Brankin, discussed China’s “substantially beat up” stocks and outlined that investors are now taking a ‘wait-and-see’ approach with such firms. Investors are keeping an eye on Chinese stocks companies due to mounting coronavirus cases, regulatory obstacles, and macroeconomic and geopolitical risks. Braking opined: The CEO added:
Shanghai Composite and Hang Seng both down
The CEO pointed out that people do not want to take on further risk at this time, highlighting the Shanghai Composite Index, which is down over 11% only in the past month, and the Hang Seng Index, which is down around 18% in the last month. Indeed, Finbold recently highlighted that the Hang Seng Tech Index plunged is now down almost 70% from its all-time high. One further thing to note is the fact that the Hang Seng is down significantly more than its March 2020 crash, when most international equities fell under the weight of Covid-19 concern. In the face of unknown regulatory headwinds in China, as well as the potential of delisting from major U.S. stock exchanges, among other considerations, tech heavyweights such as Alibaba have seen their stock prices plummet by as much as 70% since their zenith. JPMorgan Chase downgraded a total of 28 Chinese equities, including Alibaba (NYSE: BABA) and Tencent Holdings, and “called them ‘uninvestable’ over the next six to 12 months.” Watch the video: Chinese tech and EV stocks “substantially beat up” Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
