China: Is it time to go tactical long?

There are interesting news coming out of China. I have talked about China’s stock performance viz-a-viz India. Chinese stock markets were down for the last 3 years and in the process wiped off $7 Trillion in stock market wealth. So China is attempting to revive its stock market…

https://www.reuters.com/world/china/chinas-xi-discuss-stock-market-with-financial-regulators-bloomberg-news-2024-02-06/

https://www.cnn.com/2024/02/06/investing/china-stocks-rally-government-stimulus/index.html

Now, BABA is breaking out and today KWEB 6.7%.

Chinese Index vs SPY is never this low and China is trading below < 8 PE. I know there are folks who feel China is uninvestable, If you have such strong views, please ignore this post.

I think China is going to have a short-term outperformance. I already have exposure through BABA. I will be opening some long position via KWEB.

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This is from BAC, they were talking about how crowded Mag-7 long is, but equally interesting is how crowded short Chinese stocks are. Any positive news from China, the stocks could rally. But Chinese economy is not showing much life. Japan is in recession, so is EU. So China being an export economy how much better they can be?

I got shaken out of the position, while I made some money, I think KWEB has a long way to go. I need to find a way to get back.

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There are many Chinese names breaking out, for ex: BABA, JD, etc.