Indices: China’s Shenzhen CSI 300 Index
China stocks have bounced almost 10% since they plunged following regulatory moves by Beijing towards on-line education. A deteriorating COVID picture has had no material impact on stocks, a trend which has been consistent across the globe including Australia. We are now neutral around the 5000 area but another test of the downside would look attractive on a risk / reward basis.
The Chinese market was hit hard overall today however there were pockets that really got whacked, the education companies front and center after Beijing barred for-profit tutoring in core school subjects and restricted foreign investment in the sector. The move is ultimately designed to make it cheaper to have more kids in China…
