Michael Binger of Gradient Investments said on CNBC's "Trading Nation" the latest data from China showed some slowing. The industrial output was roughly 6% in July, while it was 8% in June, the COVID-19 outbreaks are putting a little bit of a pause in the economic recovery and the regulatory issues are also causing some headwinds, explained Binger.
Despite the weakness, he would be a buyer of Baidu Inc BIDU. The stock is down 50% and it's out of scope of regulatory pressure. Its sales growth was over 20% and it has mid to high teens growth for the next three years, said Binger.
Ari Wald of Oppenheimer said China is in the area of too late to sell and too early to buy, but he would still prefer to sell on strength rather than buy on weakness.
He looked at iShares China Large-Cap ETF FXI and concluded that in the last 10 years, $33 was the right level to buy. He also noticed its poor relative performance to the S&P 500 which tells him there are better stocks to buy domestically.
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