Mainland Chinese equities have rallied ~34% from their 2024 lows, and have outperformed most other global markets during the tariff saga, probably due to Government support, though they continue trade at a meaningful discount to developed market stocks, on 14.6x earnings. China stocks have proven to be significantly more volatile over time than other markets, and investors concentrating holdings towards China based on relative valuation have had a tough time – just ask Platinum!
With Chinese equities gaining support, Iron Ore prices have been firmer than many expect, and resources stocks in Australia have led the line so far in FY26, the trends here are building strength.
- We can see China equities outperforming US equities in the short term.
MM is bullish China and China facing equities
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