Indices: China’s Shenzhen CSI 300 Index
The Chinese Shenzhen CSI 300 Index has endured an awful 18-months falling 30% when many indices rallied. The emerging markets have struggled as a group under the weight of a rising $US while China has been doing itself no favours as Xi Jinping et al show little regard for keeping markets happy with their intrusive policy decisions. It’s impossible…
The Chinese bourse has been smacked 37% over the last 12-months as stocks have endured a number of major headwinds from major government intervention to faltering economic growth. However, this is one market where we believe the medium-term risk / reward is looking increasingly attractive, especially when we compare major tech names to their global peers.
The most recent bout of selling across global equities was caused by Chinese regulators but Asian equities appear to have quickly dismissed their actions and this negative influence is already becoming a memory for many markets. We continue to believe the next major hurdle for equities will be delivered by rising bond yields / interest rates.
