Last night, Tim was on CNBC Asia talking about China and reiterating that China is not a macro call as much as you are looking for bottom consumption plays.
We have made the following adjustments to the EMCHI as of April 15th: Baidu (BIDU, quote) and Tencent (TCEHY, quote) as mega-cap plays in the index already occupy the two largest weightings but have seen healthy pullbacks to core support and remain the best mix of proven revenue growth and valuation attractiveness.
After a 23% pullback in the Emerging Money Chinese Internet Index (EMCHI) and subsequent 4% bounce off the recent lows, we are getting a number of calls regarding whether or not there is a real entry point here and where we would guide for stopping losses.
Chinese Internet Plays – The pullback is an opportunity.
Sina (SINA, quote), the Chinese internet media company with four primary business including Sina Weibo, “China’s Twitter” has filed documents to list on a US exchange in the coming weeks/months. With all the fanfare surrounding social media around the world, this filing has been highly anticipated. Clearly the performance of other Chinese internet companies like BIDU (BIDU, quote, the “Google of China”) and Tencent (TCEHY, quote) has rewarded western investors for their faith in the growth coming from China’s massive internet opportunity.