FLCH - GXC: China's 'Year Of The Dragon' Rally Still Has Legs
2024-06-02 14:43:35 ET
Summary
- After years of negative returns, Chinese stocks are back.
- Backed by a much-improved macro/micro setup, this rally likely still has legs.
- Funds heavier on offshore listings, like GXC, could outperform from here.
Since I last covered the offshore-focused SPDR S&P China ETF ( GXC ) last year (see GXC: A Chinese Balance Sheet Recession Looms Large ), the fund has gone through some ups and downs. The good news, though, is that despite a rough Q1, there's been plenty of reason for optimism since then - a key factor behind my reversal on China after the Lunar New Year (see KBA: Poised To Benefit From A Chinese Dragon Year Turnaround )....
GXC: China's 'Year Of The Dragon' Rally Still Has Legs