Thursday, December 23, 2021 drop 9pct - time to accumulate ?

Tencent Holdings “send Christmas gifts” to shareholders as it announced it will distribute the JD Group’s class A ordinary shares to share holders in kind as a interim dividend. shares fell 9 pct. This is Tencent strategy to distribute dividend via shares, it does not mean that fundamentals have worsened. This distribution will bring selling pressure in the short term but it could also help expand its shareholder base thru Tencents core long term investors. After the move Walmart will be largest shareholder. 

Amongst the China internet stocks that have been plummeting this year , I actually like The overall crackdown on monopolistic practices by tech companies have made benefit, as the recent Single Day Sales saw dwarfed Alibaba's sales growth this year, with Singles' Day total GMV sales growth on its platform jumping 33% in 2021 compared to Alibaba’s 14%.

Even though Alibaba grew 14% sales growth of Singles Day, the growth is considered a significant slowdown compared to its 93% sales growth in the prior year.

Another driving catalyst of’s future long-term growth is the emergence of “digital yuan”. Currently there are about 300 million “unbanked” adults in China, with the digital yuan these group of people would be integrated into the digital economy. Given that an average Chinese consumer spends about US$3,000 a year on e-commerce platforms and if this people starts to spending even half of it (US$1,500), this would about US$450 billion worth of e-commerce consumption.

Accumulate  for the rebound between 236 to 247 .

All posts and charts are for educational and illustration purposes only

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