Kailyn138
Nov 4, 10:05 AM
China's market support is one thing, earnings are another
China is stepping in again after the CSI300 dropped 8.5% in October, its worst month in over a decade. New measures include cheaper loans for share buybacks and more liquidity support.
But I think the real question is which companies can actually grow earnings without depending too much on stimulus.
Been looking at Chinese tech names like
$BABA,
$NTES and
$HUYA. HUYA's game-related revenue grew 54.1% YoY in Q2 while its operating loss narrowed. Some businesses are showing improvement even in this weak market.
Liquidity can help stock prices short term. Earnings growth is what matters after that.
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