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 to know what will come out of the Chinese Communist Party next especially with Taiwan back on the menu but from a risk/reward perspective, we have no interest in taking a contrarian stance towards the countries index /stocks unless we see an aggressive sell-off towards the 3500 area or another 15% lower.
- The Chinese economy is spluttering ahead under pressure from strict Covid rules imposed by the ruling party while at the same time the PBOC has started cutting key interest rates to support their patchy recovery.
MM is neutral to bearish Chinese stocks
