- A lot of the good news has been priced in: Tocqueville Finance
- Technicals show shares have been overbought since late August
A Miniso store in Shanghai.
Photographer: Qilai Shen/BloombergA 400% jump in the past year has transformed Miniso Group Holding Ltd. into the best-performing stock on the Nasdaq Golden Dragon China Index. Market watchers are now debating if the gains are overdone.
Valuations are starting to look pricey for the Chinese budget retailer, which has relied on its value-for-money strategy and aggressive expansion to win market share. Technicals indicate that the thinly-traded stock is overbought and short interest is rising, suggesting that the rally may hit a speed bump in the near term.
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A 400% Rally in Chinese Retailer Miniso Faces Valuation Test