Chinese stocks are looking cheap. Fund manager explains why he's betting on Alibaba

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Chinese stocks are looking cheap. Fund manager explains why he's betting on Alibaba
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China stocks have plummeted since last year, and valuations are now looking compelling, but tech titan Alibaba is no 'value trap,' says portfolio manager Sid Choraria.

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as one, investors would have to believe that the e-commerce giant's growth will be in the single digits, said Choraria of SC Asia.

Choraria said Alibaba's growth is healthy, well in the double digits for its e-commerce and cloud-computing businesses. "If Alibaba generates the type of cash that it is [making], it's not a value trap at these levels. Now, if it's … only at low single digits, it's going to turn out to be a value trap," he said.

"As a fund manager, I'm betting on Alibaba," he said. "I like the odds with Alibaba for the next 5 to 10 years," noting, however, he has "no idea about the short term."

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