Baidu, JD In Focus As Jim Cramer Weighs In On China's Stock Stabilization Fund

Jim Cramer on Monday commented on China’s proposed stock stabilization fund, speculating on potential investments in Baidu Inc BIDU and JD.com Inc JD.

Cramer tweeted, “I love it when Chinese Communists start a stock stabilization fund. Who gets that call? Who knows if they are going to use futures? Maybe buy some Baidu? How about JD? It would be hilarious if it weren’t true.”

I love it when Chinese Communists start a stock stabilization fund. Who gets that call? Who knows if they are going to use futures? Maybe buy some Baidu? How about JD? It would be hilarious if it weren't true

— Jim Cramer (@jimcramer) September 30, 2024

This provocative statement comes as China plans to inject at least 800 billion yuan ($113 billion) into its beleaguered equity markets, aiming to reinvigorate a struggling economy.

The proposed stabilization fund is expected to provide much-needed support for Chinese stocks, creating a buzz among investors.

Both Baidu and JD have emerged as attractive options, given their recent performance and the potential tailwinds from government intervention.

Baidu Stock: Resilience & Potential Upside

Baidu stock has shown resilience. Its share price is currently at $105.55, comfortably above its eight, 20, and 50-day simple moving averages.

Chart created using Benzinga Pro

Analysts project a 12-month price target for Baidu stock ranging from $105 to $139, with an average of $122.

However, the stock is currently facing selling pressure, which raises concerns about short-term volatility.

JD’s Strong Performance, Future Outlook

Meanwhile, JD stock is trading at $41.15 and displays a bullish trend, with its price above all key moving averages.

Chart created using Benzinga Pro

Read Also: Why JD.Com Stock Is Up 27% Over The Past Week

Analysts estimate a 12-month price target for JD stock between $28.00 and $47.00, averaging $37.50. Similar to Baidu, JD is experiencing selling pressure, which could impact future performance.

As China ramps up its efforts to stabilize the market, both Baidu and JD could benefit significantly from these initiatives. While Cramer’s commentary adds intrigue, investors should remain cautious and consider the inherent risks of investing in Chinese equities amidst ongoing economic uncertainty.

The stabilization fund may provide a lifeline, but careful evaluation of both stocks’ fundamentals and market conditions is essential before making investment decisions.

Read Next:

• China Stocks Jump As Stimulus Optimism Mounts: What’s Going On?

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