Chinese Stocks Undervalued and Unloved - Opportune Time for Contrarian Investors
• Chinese stocks are undervalued compared to U.S. stocks and sentiment is very negative, making them a good contrarian buy.
• China may unveil fiscal stimulus measures to boost economic growth. Also directing capital to key sectors like EVs and chips.
• Fears of a property/debt crisis may be overblown; homeowners not overly leveraged like in the 2008 U.S. crisis.
• Baidu, JD.com, Tencent are Chinese stocks Morningstar likes given discounts.
• Rayliant Quantamental China Equity ETF overweight cyclicals that would benefit from economic rebound.