We have ended the month of May and China stocks seem to be on track to record yet another year of underperformance when compared to the US market. Most broad based Chinese indices in Shanghai and Shenzhen are down single digit percentages YTD. Hong Kong indices are slightly worse off with the Hang Seng Index down nearly 10% and the Hang Seng Tech index down slightly more than 10% in the first five months. On the other hand, the Nasdaq has had a remarkable 25% YTD performance while the Dow Jones is flat. Investors must be wondering whether you should buy, hold or sell China stocks. Here let’s discuss reasons for each case to help elucidate each individual investor’s thought process.
Table Of Contents
4 Reasons Why You Should Buy China Stocks
1) Low valuations
The valuation of China’s stocks is significantly lower...