Home » Column: Worried that U.S. stocks are at record highs?Better to Buy Chinese Stocks – Wall Street Journal

Column: Worried that U.S. stocks are at record highs?Better to Buy Chinese Stocks – Wall Street Journal

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Column: Worried that U.S. stocks are at record highs?Better to Buy Chinese Stocks – Wall Street Journal

Title: Why Now Could Be the Right Time to Invest in Chinese Stocks

If you have concerns about U.S. stocks being overvalued, consider exploring the potential of Chinese stocks as a solution. Despite negative news surrounding China, experts suggest that now might be an opportune time to invest in Chinese stocks. With valuations at historic discounts and positive shifts in the economic landscape, here’s why Chinese stocks could be worth considering.

Chief Investment Officer of Rayliant Global Advisors, Jason Hsu, highlights the discounted valuations of the FTSE China A50 Index and China CSI 300 Index, which are currently trading at just under 10 times the price-to-earnings ratio. This level is comparable to the lows seen in 2015, indicating potential value in Chinese stocks.

While there are negative factors such as the global trade war and economic slowdown in China, Xu Zhongxiang believes that market prices have already factored in these concerns. Positive changes in the Chinese economy could further support investment in Chinese stocks.

Chinese President Xi Jinping’s renewed focus on economic growth is seen as a positive shift. Potential fiscal stimulus measures and investments in key growth areas like electric vehicles signal opportunities for growth. Additionally, the Chinese government’s intervention in the stock market and efforts to support high-net-worth customers indicate a commitment to stabilizing the market.

Concerns about the real estate sector may be overblown, as the Chinese banking system has prepared for potential losses. Homebuyers are also less leveraged compared to past crises, providing a buffer against financial instability.

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Investment research firm Morningstar recommends Chinese companies like Baidu, JD.com, Tencent Holdings, and Netease for their growth potential. These companies are making strategic moves to capitalize on emerging trends and technological advancements in the market.

For investors looking to access Chinese stocks, ETFs like the Rayliant Quantamental China Equity ETF offer exposure to a diversified portfolio of Chinese companies with a cyclical bias. With holdings in sectors like technology, finance, and consumer goods, this ETF could be a promising avenue for growth.

In conclusion, the current market conditions and positive shifts in the Chinese economy present a compelling case for investing in Chinese stocks. While risks remain, the potential for growth and value in Chinese companies makes them an attractive opportunity for investors looking to diversify their portfolios.

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