Yahoo Finance Chinese Tech Companies Begin to Recover Following Trade War Hits
BIDU, JD, BABA, NTES
Alibaba BABA, JD.com JD, Baidu BIDU, and NetEase NTES all opened Tuesday up over 2%, with Baidu jumping the most, over 4%. These stocks jumped at market open after Chinese Foreign Ministry spokesman Geng Shuang stated that China is "not afraid of fighting a trade war."
Investors should take a look at these Chinese tech stocks even as U.S. giants continue on a positive streak, with Alphabet GOOGL up over 5% over the past 5 days and both Amazon.com AMZN and Apple AAPL up over 10%.
Alibaba
Alibaba Group is a Chinese tech group that specializes in e-commerce. Essentially the Chinese version of Amazon, Alibaba’s stock had soared prior to the trade war, gaining well over 40% from January 2 to May 3. Alibaba stock took a hard hit when trade war fears were renewed in early May, dropping off from its 6-month high of $195.26. After bottoming out around $148.29 on May 31, the stock has recovered nicely. Its gained 9.55% in the past 5 days.
JD.com
JD.com is China’s largest online retailer and the country’s biggest internet company by revenue. The company, similar to Alibaba, also draws many comparisons to Amazon. JD’s stock is up 33% YTD, even after falling over 15% from May 16 to May 31. The stock currently sits at $27.89 after starting the year at $21.27.
Baidu Inc.
Baidu Inc. is a Chinese tech company that specializes in Internet related services and artificial intelligence. It has the second-largest search engine in the world and the largest in China, capturing over 75% of the country’s search engine market share. Baidu’s stock has done very poorly this year, with a YTD loss of 27%. Baidu’s stock took a very hard hit in mid-May, tumbling 23% from May 16 to May 20. Since then, it has started to recover slightly, gaining over 4% today and over 7% the past 5 days.
NetEase Inc.
NetEase Inc. is a Chinese internet and video company. As one of the biggest internet and video game companies in the world, NetEase provides services for email, e-commerce platforms, and mobile and PC video games. YTD, NetEase stock is up 13.75% putting its price at $267.95 after starting the year at $229.74. Much of this year-to-date gain came after the stock fell 14% from May 3 to June 3. The past 5 days have brought over 9% growth for the stock as it recovers from its trade war drop.
Bottom Line
The overall tech market has made a fascinating turnaround after a terrible May. These gains have been highlighted by the biggest tech companies in the U.S. and are now also being seen in the largest Chinese tech firms. A recovering tech market, along with the Chinese government’s confidence in taking on Trump in the trade war, could give these companies a positive outlook for the coming days and weeks.
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