Yesterday we saw China’s Manufacturing PMI improve to its highest level this year on increasing demand even while COVID lingers around, yet again the Chinese economy is leading from the front. Concerns around rising bond yields and the defaulting hedge fund Archegos Capital have weighed on stocks but we now feel after correcting almost 18% the risk / reward has returned for the buyers.
MM likes the risk / reward for China’s CSI 300 around the 5000 area.
