China’s amid a rough path and financial markets feel the unease with which the government attempts to reform the current legal and business environment. According to Bloomberg, the Asian colossus met expectations in terms of market-opening, but there is still room for distress. TheStreet tried to approach the growth possibilities by looking at Alibaba Group Holding Ltd (NYSE:BABA)’s latest performance. It trades at about $118.2 and has an almost 26% of growth (taking the opening price as a starting point) in about 50 days, rendering approximately 0.5% growth per day, which is a clear sign that there’s no critical financial turmoil on the other side of the globe.
“Well, I’m trying to find sectors that have suffered and Alibaba Group Holding Ltd (NYSE:BABA) is a good indicator, hopefully. It’s gone from $68, if you could get it at its IPO [Initial Public Offering] price. It’s had a 75% gain in just a few weeks. So, that is an indication that the death of the financial markets in China is being greatly exaggerated,” said Alan Knuckman, chief options strategist with Barchart Bullseye Options.
Alibaba Group Holding Ltd (NYSE:BABA) arranged purchases recently of more than $9 billion in just one day. This might imply that the current distress is resulting from the changes being made and adaptation being undertaken. There’s no question about the difficulty of bringing laws and regulations that would work for the best of a population close to 1.36 billion. However, for those perceiving the news with optimism, Alibaba Group Holding Ltd (NYSE:BABA)’s example is more than enough to prove that China can stand strong on the global stage. More to this point, s&p 500 has risen almost 10% during the last month and the Western economies seem to be gaining financial muscle.
“I’m looking for the contagion to spill over positively. We’ve seen Japan just make multi-year highs and China’s making a push to the upside. So, I think BABA is a very good sign, and I think some of these Asian markets have a lot of room to recover,” shared with us Alan Knuckman.
Alibaba Group Holding Ltd (NYSE:BABA) is currently the largest online business to business and peer to peer e-commerce platform and it operates exclusively in China, so it may actually be a good indicator of growth for the world’s most populous country.
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