r/baba
Is the hatred toward China’s government making people miss one of the best value plays in the market?
Author argues Western bias undervalues Chinese stocks, citing Alibaba's strong fundamentals and low P/E as a prime long-term value play.
- Dominant e-commerce position, strong cloud growth, and serious cash reserves.
- Trading at a fraction of the P/E compared to comparable US tech companies.
- China's long-term structural investments in rail, energy, and semiconductors will compound over decades.
The Western narrative has done a remarkable job of villainising the Chinese government — but when you actually look at the economic picture, the framing doesn’t hold up.
China is building something real. Rail, energy, semiconductors, manufacturing — long-term structural investment that compounds over decades. Compare that to a US administration openly moving markets through social media posts, with stock gains driven by hype cycles rather than any meaningful business performance. Which government is actually acting irrationally here?
The vilification of China’s leadership has seeped directly into how people value Chinese equities, and it’s turned what should be a fundamentals-based conversation into a political one. People aren’t analysing the numbers — they’re reacting to a narrative.
Take Alibaba. Dominant e-commerce position, strong cloud growth, serious cash reserves, trading at a fraction of the P/E you’d pay for a comparable US tech company. The fundamentals make a clear case. But because of the noise around China, people are dismissing it without looking closely — and instead piling into US stocks inflated by sentiment with no business justifying those valuations.
I’m not interested in short-term pumps. I’m interested in where China’s economy stands in 2034. And I’d argue the only reason more people aren’t taking that view seriously is because the vilification has done its job. Are people actually investing on fundamentals here, or just on politics?
TLDR: yes though it’s 4 years plus ; damaged sentiment
Welcome to not having herd mentality. Most Chinese companies stock are ridiculously undervalued. The problem is you have have to wait knowing you're right while other people are making money in us speculative bubble.
If you can't wait, this isn't for you.
The us stock market ever since 2008 has been inflated with cheap money, low interest rates pumping stock valuation and assets. Then covid injected a stupid amount of money and inflated it even more. When it ends? I don't know. But the end results will be worse than just a recession.
The 2008 financial crisis created the occupy wall street movement and tea party. Which created Donald Trump and Bernie Sanders from populism. Covid inflation brought Trump back which lead to the Iran war. The next one, if they decide to turn on the money printer will lead to something far worse.
I own BABA, but I mean you guys need to look at Tencent at its current prices. I’m buying hand over fist, the lower and lower it goes
Tencent is a cash printing machine 👍
Nice trade? I think up 11% this morning.
It’s not a trade, it’s an investment.
Unfortunately, if it bottomed from here I won’t get to buy any more.
If you bother to read their 5 year plan you will see they treat AI as a strategic sector.
Unlike the US, China actually has a plan and executes it and not change directions daily using tweets
Problem is nobody knows if these things will ever have reasonable margins, unlike their American counterparts. The Chinese companies compete until margins end up in the graveyard. This is the fundamental problem. No one knows how low margins get.
That means they will be more competitive and out compete foreign companies in the long term
This
I’ve come to this realisation as well
Xi has really spooked everyone with crackdowns and BS. And Taiwan nonsense looms.
Dude lmfao no way is this one of the best plays. Stop it. Lmao. I’m a bag holder since Covid. This stock is ASS.
The problem with china tech is that they are competing on eating each other lunch money chasing the bottom prices... Unlike US tech.
Don’t get it twisted. So are the Americans..
Yes but things are changing. Ishowspeed helped a lot