Wait A Minute Before Buying Alibaba, JD On The Dip: Barron's

Chinese stocks are looking tempting following some declines in the past two weeks, but traders could get an even lower buying opportunity in the weeks ahead.

That's according to a Barron's article today

More pressure also could come from a possible final round of measures against China from the outgoing administration of U.S. President Donald Trump. 

On Nov. 12, Trump signed an executive order adding more Chinese companies to a list of firms the White House believes have ties to the Chinese military. The order bars Americans from investing in companies on the list.

Political commentators speculate that Trump is trying to tie the hands of U.S. President-elect Joe Biden, by putting into place last-minute measures that the incoming administration will find hard to walk back.

There also has been more talk in Washington — including at the U.S. Securities and Exchange Commission — of delisting Chinese firms from U.S. exchanges.

Yesterday, Financial Times reported that investors are taking a second look at their holdings of internet companies based in mainland China.

All of this will lead to more volatility and possibly some better buying opportunities, Barron's said.

China also is bracing for more tensions, Financial Times reported earlier this month: "Beijing expects less volatile relations with Washington under Joe Biden but does not believe the new administration will veer significantly from the hardline approach taken by Donald Trump, according to Chinese government advisers and analysts."

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