China wants to support its own stock market: invest in Alibaba, Tencent & Co. again?

China wants to support its own stock market: invest in Alibaba, Tencent & Co. again?

According to a report by www.boerse-online.de,
The Chinese government may be planning measures to revive the stagnant stock market. This could have a positive impact on companies like Alibaba and Tencent, which have suffered greatly from political tensions and retaliation.

China's CSI 300 stock index and Hong Kong's Hang Seng index have performed poorly so far this year, in contrast to the U.S. benchmark Dow Jones Industrial index and the Nasdaq 100 technology selection index. The Chinese government is now considering reducing stamp duty on stock trading to boost stock trading.

A potential tax cut could benefit brokers and certain hedge funds that benefit from rapid position turnover. Nevertheless, it is still not advisable to invest in shares of Alibaba, Tencent or other Chinese companies. Political risk remains high and there is still the possibility of further reprisals from the Chinese government.

It remains to be seen whether the proposed measures will actually be implemented and whether they will have a long-term impact on the Chinese stock market. Investors should therefore remain cautious and monitor developments closely before making investment decisions.