2024-06-03 17:55:47 ET
Summary
- China's market carries a ton of risks that investors should consider.
- These risks include the rising tides of the US-China Trade War, geopolitical tensions over Taiwan, and receiving the "Russian treatment" from the west.
- This article introduces a pair trade idea designed to take advantage of these risks and recent Chinese aggression, as well as the US ban on TikTok and other tech.
Introduction
When most westerners think about China, we often think of a few things :
- China's liberalized economy and illiberal, authoritarian social institutions, euphemized in China as "socialism with Chinese characteristics"
- Mass manufacturing, i.e. "Made in China"
- Massive, dense cityscapes like Beijing, Shanghai, and Shenzhen
- Geopolitical threats made to the US, South Korea, Japan, and Taiwan
- TikTok and its contested US ban
Read the full article on Seeking Alpha
For further details see:
Why I'm Shorting Chinese Stocks