Should You Buy These 2 Chinese E-Commerce Stocks?
After three brutal years of intense lockdowns, the Chinese economy started to finally get past the COVID-19 pandemic restrictions at the beginning of 2023. Investors -- seeing how stocks performed in other markets after pandemic restrictions were lifted -- started to bid up shares of Chinese stocks in hopes the companies would start improving their financials again.
However, there is one sector of the economy investors have been bearish on coming out of the lockdowns: e-commerce. E-commerce sales boomed around the world during the COVID-19 pandemic but have seen slowing growth in certain markets after economic reopenings. The funny thing is that the Chinese e-commerce market continues to grow, and is expected to reach $3.3 trillion in sales in 2023 and $3.56 trillion in 2024. It is the largest e-commerce market in the world and makes up over 50% of the sector's global payment volumes.
JD.com (NASDAQ: JD) and PDD Holdings (NASDAQ: PDD) are two Chinese e-commerce stocks that have sold off so far this year. Should you buy shares at these depressed levels to play the Chinese e-commerce boom?
Source Fool.com
