From Tokyo to Mumbai, there’s been plenty of anxious chatter recently about how China’s bull market — which turned 883 days old this week — may have finally run its course. At the end of Asian trading on Thursday, the Shanghai Composite Index had fallen 8.2 percent in three days, its worst performance since mid-2013.
That was before Jack Ma, chairman of China’s e-commerce giant Alibaba, had his say. After the close of trading on Thursday, the company reported a 45 percent jump in fourth-quarter revenue, handily beating Wall Street estimates. To anyone who wondered whether the 105 percent rally in Shanghai shares over the past year was over, Alibaba’s success seemed to offer a sharp rejoinder.
But Alibaba’s position — and the Chinese economy’s — is more ambivalent than it seems. Before diving back into China’s froth-filled stock market, investors would be wise to take a second look.
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