- China's consumer discretionary sector has seen extreme gains over the past few months as investors pile into the only major area of global economic growth.
- China's consumption has grown at a fast pace over the past decade, but growth has decreased substantially over the past few years as its housing market becomes unstable.
- Recent surprise defaults of AAA-rated state-owned-enterprises have sparked fears of hidden widespread risks in China's major corporations.
- Despite risks, valuations of China's major consumer discretionary companies have nearly doubled this year.
- The China consumer discretionary ETF CHIQ's performance may reverse soon as the PBOC looks to stop the Yuan's rise and the U.S. flirts with delisting Chinese firms.
For further details see:
CHIQ: China's Consumer Discretionary Sector Headed For Major Speedbumps