Major companies like Jack Ma’s Alibaba (BABA) have followed the Hang Seng’s roadmap almost step for step destroying plenty of value on the journey. BABA have already come foul of the Chinese regulator after it’s canned float of Ant Group but a more than 30% decline has restored plenty of value in our opinion. Our initial response to Chinas move was to reduce our exposure to the region however now its evolved as we consider cutting our perceived “weak link” Ping An Insurance (2318 HK) while not being adverse to average continued weakness in Alibaba and / or Tencent.
MM believes BABA is an aggressive buy into fresh 2021 lows
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