China lockdowns could prove to be beneficial for companies like yours AlibabaStonehorn Global Partners’ Sam Le Cornu said that his company is purchasing more shares of the Chinese tech giant.

Le Cornu, the CEO and cofounder of investment management firm Investment Management Firm, stated that “We are increasing our position at Alibaba.” We see it as a buy opportunity based on the valuations and earnings outlook.

China’s strict zero-Covid strategy continues as the pandemic enters its third year. Lockdowns are being put in place in major cities after only a handful have been identified. The pandemic reached its third year in December. major Chinese city of Xian went into lockdownHowever, the confirmed Covid cases in this city are much less than those reported by other overseas cities.

This could be good news for platforms like Alibaba’s Taobao, and Tmall. The consumers still have to purchase goods, but will only have limited access to brick-and-mortar stores.

Take what happened the last time you were there [were] lockdowns, when it first originated in China — Tencent, Alibaba, JD, PinduoduoHe said that all of them did very well.” Alibaba is a fantastic opportunity, I believe with these lockdowns.

Another investor said that he was impressed by the way Alibaba has navigated some of these macro headwinds.

China’s tech sector is also under pressure due to months of regulatory oversight from Beijing.

Asia markets, Hong Kong especially. Hang Seng indexAccording to the CEO,, suffered a difficult year in 2021.

It was Asia-Pacific’s worst-performing market, with a benchmark index of 14%.

“You’ve got the price-to-book in this market at 30-year lows or almost all-time lows and if you look at the composition of it, there’s a lot of … undervalued, oversold positions,” he explained. This ratio is used to determine the stock’s value. It compares stock prices to their book value.

At a time where major U.S. indexes have reached all-time highs, the broader Asian region appears to be “relatively unvalued”.

Le Cornu suggested that there could be an emerging market rotation as a result. This is because China seems to be at the center of policy loosening while the Federal Reserve indicates the beginning of a tightening cycle.

U.S. markets tumbled on WednesdayFollowing the publication of minutes from the December Fed meeting, officials from the central bank were able to view the minutes. ready to aggressively scale back policy help. The sell-off continued in Asia and EuropeThis Thursday saw tech stocks as well as cryptocurrencies fall sharply.