China’s ’08 crisis’ – Is this the reversal?

My name is MrJSmyth.

For the last 2 years I have slowly been buying up Chinese equities. Month after month, they fell time and time again.

As many of you may know, Chinese stocks took a sudden nose dive during Covid. The CCP announced major lock downs, they fined their big tech and took cash from their reserves. They cracked down on many of their private companies including the likes of Alibaba and Tencent just to name a few. Then you had the political divide with things such as a potential war between Taiwan, the spy balloon controversy with the US and also a possible chance of delisting the ADR's off the US stock exchanges just to name a few.

Let's just say it hasn't been a pretty few years. HOWEVER.

One thing I noticed was that their balance sheets never took a nose dive in the way their stock price did. Their economy still grew at 4% near it's lows and even though the housing market was crashing due to the big property developers not being able to finish the projects, China was still growing. Slower, but still growing.

With this information I looked through some of China's biggest names and every 3 months checked in on their earnings and the rest of their balance sheet material.

It didn't take long to notice that the stocks were not falling due to declining sales but more so due to political interference.

100 years ago no one was buying stocks from Germany, they were public enemy number 1. Now if I could tell you that you could buy some of Germanys biggest companies for pennies on the dollar back then you would do it with 20/20 hindsight. Well, I believed the same thing for China.

So, I begun buying. Over the last 2 years I have bought more that £50,000 worth of stock in Chinese equities, lowering my average each and every quater.

As of the past few months my chinese portfolio has pulled very slightly into the green and we are still so far off the all time highs from the likes of Alibaba and Tencent.

Now I am not saying we will ever reach those highs again or that I won't go into the red again however I do believe that over the last 2 years I have bought at 08 levels and now it appears the Chinese market could be ready to rip.

Again, this is all opinion and speculation.

My question to you lovely folk of reddit is this. What is your thoughts on the Chinese market and also, if you were around during the 08 period, how did you benefit/get slaughtered by the great crash of 08.

Thanks for taking time to read this piece.

Kind Regards
MrJSmyth