Alibaba is China's biggest online commerce company and significant by world standard. Baidu is China's largest search engine or China's Google.
You'd imagine that China being a huge market with strong growth , that these companies would not be expected to fall drastically.
But Alibaba has lost almost all of its gains since the March lows of the COVID crash, down almost 40% from its peak, while Baidu is also en route, down 43% from its peak.
40% drop is a CRASH ! And it has happened to the even the most respectable companies in China. Fact is they were trading at eye watering valuations. And so are the FAANGMT stocks, so what is to say they won't suffer the same fate eventually.
The world pays little notice to a 40% crash in Alibaba and Baidu, but if and when that happens to Google, Facebook or Apple, the world markets would be in turmoil.
