I had written two investment cases about China (here and here) a couple of weeks ago, arguing exactly that. For weeks, the Chinese selloff was a growing opportunity for savvy investors. Confirming that thesis, Baidu (NASDAQ:BIDU) presented good results early this week, and Alibaba (NYSE:BABA) just released results that, although slightly below expectations, do not indicate weakness.





After the depressing storm, the market is now reading that the trade negotiations are going in the right direction, and the Chinese market rallied accordingly. However, I wouldn't put my fate in a couple Trump tweets. We will have to wait and see what kind of deal, if any, will come out of the negotiations. If there is a reasonable trade deal, it would be better than the current status quo, and this would probably set a positive tone for the Chinese market. However, the unpredictable nature of president Trump will, most likely, bring turbulence during the negotiations.