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Chinese Stocks: Dip to Buy or Time to Avoid? 
Amidst the recent dip in Chinese stocks, investors are evaluating whether this downturn presents a buying opportunity or a signal to stay away. The MSCI China Index had shown a promising rebound, surging 20% from its bear market lows in May, driven by Beijing's efforts to revitalize the economy. However, recent developments, including new European Union tariffs on Chinese electric vehicles and renewed economic struggles, have led to a steep selloff. Notable Chinese U.S.-listed stocks like JD.com and Alibaba have returned most of their gains, with JD down over 14% and BABA down almost 9% for the month. Is there a HUGE hidden income opportunity within Apple stock?
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In fact, a contributing writer at the Financial Post studied options extensively… Click here to see me place one of these trades LIVE on camera. JD.com: Potential Turnaround or Further Decline? JD.com (NASDAQ: JD) is a prominent Chinese eCommerce company. Initially starting as an online magneto-optical store, the company has evolved into one of China's largest B2C online retailers, offering various products, including electronics, mobile phones, computers, and more. After the recent selloff, shares of JD have now sunk red during the year, down slightly by 0.4% YTD. The stock has attractive value metrics: a P/E of 13, a dividend yield of 2.57%, and projected earnings growth of 9.09%. However, from a technical analysis perspective, investors will want to see the stock reclaim the $30 critical level to maintain hopes and confidence in a turnaround. Alibaba: Investment Opportunity or Bearish Signal? Alibaba (NYSE: BABA) is a prominent eCommerce and Internet technology giant. Its primary platform, Alibaba.com, ranks as the world's third-largest eCommerce platform by sales. Like JD, the stock has now turned red again on the year after its steep, almost 9% selloff over the previous month. The stock now has a P/E of 16 and a dividend yield of 1.34%, with projected earnings growth of 12.07% for the entire year. Analysts are bullish and forecast a 48% upside based on their consensus price target. However, a worrying sign for BABA is that it is now trading well below all of its major moving averages, with momentum firmly on the downside, showing no bullish signals for investors. Current Market Conditions for JD.com and Alibaba While the recent dip in Chinese stocks might suggest a buying opportunity, the lack of bullish technical signals and the overall negative backdrop in the Chinese market indicate that it might be prudent to wait for clearer signs of stabilization and a turnaround before investing in these names. Although heavyweight investors have shown confidence in Alibaba and JD.com, the current market conditions and recent selloffs suggest that capital might be better allocated elsewhere until these stocks and the overall Chinese market show signs of stabilization and a turnaround. Written by Ryan Hasson Read this article online › Featured Stories: | 
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