Trading Chinese consumer as stocks slide

If weakness in Chinese stocks persists, consumer-facing stocks could reach appealingly cheap prices, some "Fast Money" traders contended Monday.

The Shanghai Composite slipped more than 2.5 percent Monday, and major Chinese consumer names fell with it. Alibaba, Baidu, China Mobile and all ended in the red in New York trading.

But trader Tim Seymour sees little cause for concern in consumer stocks. On a pullback, Alibaba, Baidu or China Mobile all have upside, he said.

Inside Alibaba Group Holdings headquarters.
Jeff Pohlman | CNBC
Inside Alibaba Group Holdings headquarters.

Traders David Seaburg and Dan Nathan also believe has room to run. The online retailer looks like "Amazon five years ago," Seaburg said.

Hong Kong stocks, which have exposure to China, could see volatility in the coming year, said trader Brian Kelly. He said a potential drop could be played by shorting the iShares MSCI Hong Kong ETF.


Tim Seymour

Tim Seymour is long AAPL, BAC, CLF, DIS, F, FCX, GE, GM, GOOGL, INTC, JCP, JPM, KO, LGF, RL, T, TWTR, VRX. Tim's firm is long BABA, BIDU, MCD, NKE, SBUX, YHOO.

Dan Nathan

Long MCD Feb Put Spread, Long PFE buy-write, Long TWTR March Risk Reversal, Long UUP March call, Long XLU Feb Call spread, Long PYPL Jan Risk Reversal, Long M Jan16 call spread, Long NTAP Jan risk reversal, Long GM Jan Put Butterfly, Long Len Jan Put Fly, Long QCOM feb calls, Short SPY, Long UUP

David Seaburg

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc

Brian Kelly

Brian Kelly is long BBRY, Bitcoin, GDX, GLD, Hong Kong Dollar, TLT, US Dollar; he is short British Pound, Euro, Yen, Yuan, Canadian Dollar, GSG, EEM, EWC, EWH, KRE, SPY