Posted 3/4/2024, 12:20:00 PM
China Stocks Poised for Rebound as Negativity Creates Buying Opportunity
- Sentiment towards Chinese stocks is very negative, making them attractive contrarian buys at discounted valuations
- China's president Xi is refocusing on the economy, which could mean fiscal stimulus, directed investment, and government stock purchases
- Fears about a property/debt crisis may be overblown due to debt reduction and bank capital reserves
- Stocks like Baidu, JD.com, Tencent are attractive due to shifts in business strategy and growth potential
- Cyclical sectors and stocks listed in China could benefit most from an economic rebound