Flashback: Last December, China finally shifted away from its zero-COVID policy — following the rest of the world. This year, China is really embracing the Year of the Rabbit. February economic data jumped to a strong start: Manufacturing grew at the fastest pace in over a decade. China’s home sales rose for the first time…
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US-listed Chinese stock rally holds over a balloon
What’s two school busses long, gets more attention than Trevor Noah’s Grammy jokes and goes down faster (but apparently not fast enough) than Ben Affleck’s interest in J.Lo? A balloon. But not just any balloon. A shot-down Chinese balloon that many believe to be spy equipment. Prepare for disappointment because you won’t find any conspiracy…
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China’s zero-COVID policies backfire and spark countrywide protests
Remember when COVID was a thing? China remembers it like it was yesterday. And it’ll be fresh on their minds tomorrow too. Zero-COVID policies have kept China in a constant cycle of “reopening” and lockdown. Just two weeks ago, China eased lockdown restrictions, which they quickly reversed after a recent surge in COVID cases. The…
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Odds of Chinese-listed U.S. stocks being delisted from U.S. exchange falls
Over 200+ Chinese companies that trade on U.S. stock exchanges are at risk of being delisted — notably some of China’s most well-known companies like Alibaba, Baidu and Pinduoduo. Delisting fears have been a pain point for many global investors — on top of the many risks in the Chinese economy. But last Friday, the…
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A property crisis in China risks spreading to other parts of the market
China was supposed to be one of the areas of strength for 2022. Recent developments in their property sector risk reversing progress and taking down other parts of the market. The property sector makes up 25% of China’s economy Over the past 20 years, China experienced the biggest property boom in history. Developers went on…
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Reversal of U.S. tariffs on China could add momentum to Chinese equities
Biden is considering dropping U.S. tariffs on several Chinese imports implemented by Trump in 2018. The goal is to bring down inflation, and a decision could come this week. The move is estimated to bring down inflation by 0.3% in the short term and eventually rise to 1%. The idea was announced in early June,…
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Chinese stocks outperform and there are reasons that can continue
Chinese stocks have outperformed U.S. stocks in the past month, and there’s good reason to believe they can continue to outperform for the rest of the year. Let’s get the bear market over with The iShares MSCI China ETF (NASDAQ:MCHI) — an ETF that tracks an index containing Chinese equities available to international investors —…
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Investors see Chinese stocks in a new light
Institutional investors are beginning to see Chinese stocks differently. After months of selling, global investors have again become net buyers of Chinese stocks — for the first time since March. Catch up: Why are Chinese stocks down so drastically? Four things helping China bulls… Low valuations, supportive government policies, improving earnings and lockdowns easing —…
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Chinese stocks rise as delisting fears ease
The US and China are trying to make their relationship work, and if they can’t agree, investors could be in for a messy split. News last Friday shows the two are in discussions to keep Chinese stocks listed in the US — giving Chinese stocks even more momentum after falling hard the past two years….
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Chinese stocks pull a sharp u-turn with new market policies
Yesterday, China’s top economic official announced plans to boost the economy and introduce favorable market policies. Panic selling of US-listed Chinese stocks quickly became panic buying. What’s the big deal? Nearly two years ago, China moved towards regulating internet companies, weeding out corruption and moving away from capitalism — spelling turmoil for Chinese markets. But…
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