China Adr Deep Value

JD/PDD 9x P/E, BABA below intrinsic — delisting resolved, stimulus pivot, geopolitical discount

China ADR Deep Value

Total Return

+28.2%

Sharpe Ratio

0.41

Max Drawdown

-12.8%

Win Rate

47.5%

Alpha

-14.5%

Comp. Score *

0.16

Risk Parameters

Max Allocation6.0%

Stop Loss15.4%

Take Profit10.0%

Max DD Tolerance12.8%

Rebalanceweekly

Execution Guidance

Order TypeLimit

Entry RuleBuy below SMA200 or at RSI < 35. Value = patience. Don't rush.

TimingSAFE TO BUY. *

ScalingEnter in 3 tranches over 4-6 weeks as price confirms bottom.

Positions — Vol-Adjusted Sizing

Symbol	Action	Vol	Stop Loss	Take Profit	Size	Links
LI	BUY	52%	33.8% below entry	22.0% above entry	2.7%	TV YH
TME	BUY	53%	34.1% below entry	22.1% above entry	2.7%	TV YH
JD	BUY	44%	28.5% below entry	18.5% above entry	3.2%	TV YH
PDD	BUY	47%	30.7% below entry	19.9% above entry	3.0%	TV YH
MNSO	BUY	58%	37.4% below entry	24.3% above entry	2.5%	TV YH

▶ For Passive Investors (Buy & Hold)

This strategy has moderate long-term potential but requires monitoring. - Take profit: Rebalance when any position exceeds 2x its target weight. Trim back to target, redeploy to underweight positions. - Stop loss: NO price-based stop loss. This strategy recovered from -41% drawdown to return 42% long-term. - Exit rule: Exit if free cash flow turns negative for 2 quarters — value trap confirmed.

Avg 5Y Return

15.8%

Avg 5Y Sharpe

0.03

10Y Return

42.2%

10Y Sharpe

0.08

HODL Composite

0.11

Consistency

75%

Suitable for passive