[Written By External Partner]
COVID-19 has changed many aspects of society and one of the sectors which has changed dramatically is the financial industry since most of the commercial activity has moved online.
China is one of the most developed countries in the world with the second-biggest economy globally and its financial growth is continuously increasing. In 2020, the Chinese stock market performed particularly well, which encouraged many investors to consider trading in this sector, however, in 2018, there were struggles back in 2018. The MSCI China index significantly decreased by 18.9%. Due to the fluctuations in the market, you may be struggling whether an investment in the Chinese tech stocks would be a positive long-term move, or whether it would be worth avoiding. If you’re hoping to find out more, it may be worth reading smart guides to spread betting to get up to speed.
In 2019 there showed to be a slight improvement in the tech market which was a small step in the right direction and recovered faith from investors. During the first 16 weeks of the new financial year, a trade agreement between the US and China catapulted the MSCI China index by 22.2%.
Investing in foreign stocks isn’t always the easiest move to make and may take a great deal of research. There are risks involved that you may never have considered, including currency and regulatory risks and those associated with the particular region, including war and natural disasters.
The good news is, however, that the Chinese stock market has become much more welcoming to overseas investors, which has created more opportunities. Just a decade ago, the biggest markets in trading were in the energy and financial sectors, but due to recent developments, internet and consumer goods and services have also grown in size which has allowed for greater choice on investment types.
Although there is shown to be improvements in the performance of stocks, there is still substantial risk to be addressed before deciding to invest.
Some of the best Chinese tech stocks to consider include:
JD.com is China’s leading vendor and is, therefore, one of the most stable markets to invest in if you’re not looking to take an exceptionally large risk. JD is a company which controls supplies and completes customer orders with its very own logistics system. In the future, it is expected that the company will grow to a colossal scale which makes it a very wise choice for trading.
BiliBili is a digital media corporation that certifies mobile games, anime series and videos. Although it may not be a well-known brand name in countries outside of China, it has certainly hit the height of popularity in this single country, with 53.3 million users per day. The stocks for this company have multiplied in the past 12 months and is, therefore, a worthy investment. At the current time, the Chinese tech market is more stable than ever before, therefore, if you are willing to take a risk and reap huge profits, 2021 may be the ideal time to start trading in this sector.