2024-04-17 13:32:57 ET
Summary
- China has taken measures to stimulate its economy and stem the rout in Chinese equities via both fiscal and monetary stimulus, contrasting with the US' restrictive monetary policy.
- China's slow recovery is showing positive signs, with Q1 2024 GDP growth exceeding expectations.
- Chinese tech companies like Alibaba are trading at all-time lows in terms of price and P/E ratios, presenting potential investment opportunities.
- TDF is a China-focused CEF that invests in equities and targets long-term capital appreciation rather than dividend yield.
- The CEF is currently trading with an almost historic wide discount to its net asset value.
Thesis
China has been a hard hit jurisdiction this year when it comes down to stock performance. The Chinese Communist Party ('CCP') has taken a number of actions this year to stem the rout in Chinese equities and stimulate the local economy. Among these measures one can find cutting required bank reserves, issuing long-dated bonds to inject liquidity, restricting equity short selling and allocating capital for industrial development . While the U.S. is in full restrictive monetary policy mode, China is stimulating its market both fiscally and monetarily....
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TDF: China Equities CEF With A Large Discount To NAV