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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Big banks get bullish on Chinese stocks

2021 was a tough year for US-listed Chinese stocks. Chinese government crackdown on tech and educational stocks along with fears over delisting of Chinese stocks from US exchanges led to a massive sell-off. But the tides may be turning green for the red flag stocks as big banks get bullish on China. China’s big fall…

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US and China’s Complicated Relationship

One country is deviating from the rest of the world. Yesterday, China lowered their interest rates in an attempt to stimulate slowing growth. Meanwhile, the US prepares to raise rates this year. What’s the big deal? Consumers in the world’s second largest importing country are spending less — a bad sign for the rest of…

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