FYI: China’s economic slowdown, its trade dispute with the U.S., and pro-democracy protests in Hong Kong have dominated the news this year. Yet, for all this turmoil, Chinese stocks have done remarkably well. The Shanghai Composite index, home to stocks bought mainly by domestic investors, has returned 19% in U.S. dollars, while the Hong Kong–traded Hang Seng index, whose shares are favored by foreign investors, is up 10%.
The members of Barron’s China Roundtable offer an easy explanation for these and further gains: China’s domestic market is enormous and growing rapidly, fueling demand for education, life insurance, media, sportswear, and baijiu, the famously fiery national liquor. And it isn’t just big spenders in Beijing or Shanghai who are scarfing up services and stuff, but increasingly consumers in smaller cities that are home to roughly the population of the U.S.
Regards,
Ted
https://www.barrons.com/articles/alibaba-tencent-and-13-other-chinese-stocks-that-dont-need-a-trade-deal-to-reward-investors-51572643702?mod=past_editions
