PGJ - PGJ: Downgrading To Hold

2024-04-13 11:45:00 ET

Summary

• The Invesco Golden Dragon China ETF has slightly outperformed the S&P500 returns since late January.
• The recent economic data in China shows an uneven dynamic of key indicators, though this shouldn't deter further investing, for now.
• While it's not the time to completely get rid of Chinese stocks now, investors should exercise caution before getting more exposure to Chinese equities.

Back in January, I shared my bullish view on The Invesco Golden Dragon China ETF (NASDAQ: PGJ ). So far, the bet on China pays off, slightly outperforming S&P500. However, the market rally in Chinese equities has stalled for more than a month. It's time to discuss again what happened and whether we should expect the next leg of the rally in Chinese stocks....

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