China Tech Rebound

China tech ADR recovery: deep value after regulatory crackdown

China Tech Rebound

Total Return

+4.1%

Sharpe Ratio

0.03

Max Drawdown

-30.6%

Win Rate

43.0%

Alpha

-21.8%

Comp. Score *

0.02

Risk Parameters

Max Allocation2.0%

Stop Loss25.0%

Take Profit8.0%

Max DD Tolerance30.6%

Rebalanceweekly

Execution Guidance

Order TypeLimit

Entry RuleBuy when local market index is above SMA200. FX matters — check currency trend.

TimingSAFE TO BUY. *

ScalingEnter in 3 tranches over 2-4 weeks. Currency hedging optional.

Positions — Vol-Adjusted Sizing

Symbol	Action	Vol	Stop Loss	Take Profit	Size	Links
BIDU	BUY	46%	40.0% below entry	15.4% above entry	1.0%	TV YH
FXI	BUY	45%	40.0% below entry	15.2% above entry	1.0%	TV YH
ZTO	BUY	33%	34.7% below entry	11.1% above entry	1.4%	TV YH
TME	BUY	53%	40.0% below entry	17.7% above entry	0.9%	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 -62% drawdown to return 68% long-term. - Exit rule: Exit IMMEDIATELY on new delisting legislation or regulatory crackdown.

Avg 5Y Return

31.6%

Avg 5Y Sharpe

0.2

10Y Return

67.7%

10Y Sharpe

0.18

HODL Composite

0.19

Consistency

75%

Suitable for passive