David Tepper’s Bold China Investments: Economic Indicators Spark Optimism
Reflecting on the Chinese market, one cannot help but recall a quote from renowned investor George Soros:
“When I see a bubble forming, I rush in to buy, adding fuel to the fire.”
Additionally, Stan Druckenmiller’s insights on liquidity resonate in today’s context:
“Earnings don’t move the overall market; it’s the Federal Reserve Board… focus on the central banks, and focus on the movement of liquidity… most people in the market are looking for earnings and conventional measures. It’s liquidity that moves markets.”
This chart of China’s money supply provides vital insight.
Image Source: Zacks Investment Research
Billionaire investor David Tepper recently stated, “When China wants to boost their stock market, the government will stop at nothing.” Notably, in his last 13F disclosure, Tepper allocated over 20% of his impressive $6.73 billion portfolio to Chinese equities.
Tepper’s Significant Investments in China
According to Tepper’s latest 13F filing, his portfolio includes the following investments:
Alibaba (BABA): 15.54% allocation, added 18.43%
PDD Holdings (PDD): 8.04% allocation, added 1.04%
JD.com (JD): 5.61% allocation, added 43.37%
iShares China Large-Cap ETF (FXI): 3.13% allocation, added 13.75%
KraneShares Trust (KWEB): 2.07% allocation, added 21.53%
Baidu (BIDU): 1.99% allocation, added 7.22%
Tepper’s portfolio deserves attention. He invests large amounts and shows confidence in his picks, which has often led to correct predictions.
In a recent CNBC interview, Becky Quick asked Tepper about his strategy and reasoning for investing heavily in Chinese stocks. His response indicated strong confidence in Chinese equities, stating he is “buying everything” regarding China, and when asked about hedging, he remarked, “I don’t care.”
Share buybacks are considered a bullish market sign. For instance, Apple (AAPL) has historically seen its stock price soar due to substantial buybacks. In 2024, Chinese firms also reached a new record for share repurchases.
New Stocks Making Waves in China
Despite stocks like BABA seeing significant gains, new opportunities are emerging within stocks like JD. After experiencing a severe downturn starting in October, JD is now breaking out of a weekly bull flag pattern.
Image Source: TradingView
As the saying goes on Wall Street, “The longer the base, the higher in space.”
Increasing Short Interest Could Boost Prices
A technical breakout combined with high short interest often leads to sharp price increases. Recently, short interest in China has hit all-time highs.
Image Source: (@subutrade)
Concluding Thoughts
Growing liquidity, record share buybacks, and historically high short interest point to a potentially vibrant future for the Chinese stock market.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Baidu, Inc. (BIDU) : Free Stock Analysis Report
iShares China Large-Cap ETF (FXI): ETF Research Reports
JD.com, Inc. (JD) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
KraneShares CSI China Internet ETF (KWEB): ETF Research Reports
PDD Holdings Inc. Sponsored ADR (PDD) : Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
