The Year of the Dragon is upon us, and with it comes the familiar spectacle of Chinese tech giants like Alibaba and JD.com flexing their muscles. Spring Festival promotions, fueled by substantial subsidies, have ignited a spark, leading to impressive gains. But beneath the surface of this festive rally lies a deeper question: does this surge signal a true resurgence of the Chinese market, or is it merely a fleeting illusion in a landscape fraught with risk? For years, the narrative has been consistent: China's stock market has significantly underperformed its US counterpart. While Wall Street has ridden the wave of technological innovation and investor enthusiasm, Chinese equities have struggled with a complex interplay of regulatory crackdowns, geopolitical tensions, and concerns about ec
Alibaba and JD Surge: Will Spring Festival Subsidy Fuel Further Gains?
On Friday, JD.com soared 10%, becoming one of the best-performing Chinese stocks since the start of the year. On Tuesday night, Alibaba rose 2%. The logic behind the gains for both companies lies in the rumored government Spring Festival subsidy vouchers. JD.com was undoubtedly a major beneficiary of the last round of government consumption vouchers, which significantly boosted platform spending. If these subsidy vouchers are indeed distributed, which stock do you think will perform better? Are you more optimistic about JD.com or Alibaba?
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