The Motley Fool·2024-06-22 07:15Group 1: Investment Strategy - David Tepper has shifted his investment focus from U.S. technology stocks to Chinese tech stocks, swapping out five U.S. Magnificent Seven stocks for Chinese equivalents [2][4] - Tepper's new investments include Alibaba, PDD Holdings, Baidu, JD.com, and two China-focused ETFs, indicating a significant bet on the Chinese tech sector [3][6] Group 2: Economic Context - China's economy has faced challenges post-COVID-19, including strict lockdowns and regulatory pressures on tech companies, leading to a downturn [5][6] - Recently, the Chinese government has eased regulations and initiated measures to stimulate economic growth, resulting in six consecutive months of positive growth in the manufacturing sector [6][9] Group 3: Valuation and Performance - Chinese tech stocks are currently trading at low valuations, with PDD Holdings at 12 times earnings and Alibaba, JD, and Baidu between 8 and 9 times earnings estimates [7][9] - Companies like Alibaba and JD.com are actively repurchasing shares, with Alibaba increasing its buyback authorization by $25 billion and repurchasing $4.8 billion worth of stock in Q1 [9]