Morningstar Outlines 9 Undervalued Chinese Stocks That Have Been Oversold

The video discusses investment opportunities in undervalued stocks like Alibaba, Tencent, and Yum China, emphasizing the criteria used for valuation. It addresses the impact of Evergrande's financial issues on the market, comparing it to past financial crises. The discussion also covers US market reactions and expectations regarding Federal Reserve policies, particularly asset tapering and inflation trends.

What is the main reason Alibaba is considered a good investment opportunity?

• It has recently increased its dividends.

• It has a strong presence in the US market.

• It is trading at half of its fair value.

• It is the largest e-commerce platform in the world.

How have analysts adjusted their valuation metrics in response to market changes?

• By ignoring long-term business fundamentals.

• By increasing the cost of equity and uncertainty ratings.

• By reducing the number of stocks covered.

• By focusing solely on short-term gains.

What is the primary concern regarding Evergrande's financial situation?

• It will lead to a global financial crisis.

• It has a highly leveraged balance sheet and liquidity issues.

• It will cause a significant drop in US stock prices.

• It will result in increased interest rates worldwide.

How does the speaker compare the Evergrande situation to the 2008 financial crisis?

• It will lead to a similar global recession.

• It is exactly like the Lehman Brothers collapse.

• It is a minor issue with no global impact.

• It lacks the credit counterparty risk that caused the 2008 crisis.

What is the expected timeline for the Federal Reserve's tapering program?

• It will start next year and end in two years.

• It will begin in November or December and end by fall next year.

• It will not start until inflation reaches 5%.

• It will start immediately and end by next month.

What is the anticipated effect of the tapering program on inflation?

• Inflation is expected to rise significantly.

• Inflation will drop to 0%.

• Inflation is expected to moderate towards 2%.

• Inflation will remain unchanged.

What is the speaker's view on the timing of the Federal Reserve's tapering announcement?

• It should be delayed until next year.

• The timing does not significantly impact long-term investors.

• It should coincide with a rise in interest rates.

• It is crucial to announce it immediately.