Chinese equities remain a contrarian idea

Readers of my weekly editions of “Macro Extremes” will remember my commentary about unloved Chinese equities when they were wallowing in oversold territory.

Then we had a plethora of “American” analysts and portfolio managers telling us that China 🇨🇳 is ‘uninvestible’.

On Bloomberg Radio today, a pundit expressed disappointment in the Chinese governments lack of interest (unlike American authorities) to intervene in the affairs of indebted property developers who may risk destabilising the economy.

Let me get this straight….the capitalist is advocating socialism?

p.s. over the past 3 weeks, the Hang Seng China Enterprises Index (HSCEI) has risen 10% while Alibaba has climbed 28%.

October 27, 2021
by Rob Zdravevski
rob@karriasset.com.au

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