Although I am no stranger to the smell of money, I avoid China, despite its, I don't know what to call it, great potential, shall we say? I'm not condemning anyone for investing in China, I consider it risky and another research report confirms me in this.
Yes, I did, I opened an article with a clear clickbait headline on Yahoo: China's economy is rotten and its booming reopening is a "charade". But the core of the article is not bad at all.
It states that China's economy can recover from covid restrictions, but something smells blatantly wrong.
For example, Wall Street's assumption of 5% GDP growth would suggest corporate sales growth of 8%, but they grew 1.5% in the first quarter. In fact, corporate earnings are slower than GDP in 20 of the country's 28 sectors, and the MSCI China stock index is down 15% from its January peak. The numbers just don't add up and it bothers me a lot, or would if I wanted to invest there.
What's your take? Is China (un)investable for you?
I'm not investing in China yet. Maybe in the future I will buy something, but the bare minimum for diversification and to have something invested in this market.
The article is about analysts from the USA (btw maybe when you link to some articles, it would not hurt to insert the source?:) https://finance.yahoo.com/news/chinas-economy-turned-rotten-reopening-232901546.html So I would not ask if you believe Cina, or their date, but what the analysts are based on and why to believe them;)
So far we can see what are the results of other companies that are publicly traded in the US and there is no big growth (I'm holding Tencent, Alibaba) but if you don't believe in China and its accounting, there is no point in buying anything there, because there are many more problems and this is the basis.
You can find quality companies with high potential, but I prefer not to invest there. At least not now.
I think China is investable, but you just have to take into account the high risk.
In China, I only know $BABA, which I wanted to invest in. In the end, I changed my mind. I'm conflicted inside... I have a negative perception of China, but if there is an opportunity there, it's a shame not to take it because of my beliefs.
I don't trust China much, yet I have a few shares 🙈
I'll check out the article too, because as you write, I agree. I had an Alibaba and once it got to zero I sold and will not be going back to China. Even though $NIO is having a wave right now As you say, I wish people success and good luck to those invested there, but I've read elsewhere that the numbers don't add up somehow. The index is down, the gains are not the same, that's what we've seen now with $BABA...plus there's a good moment and then something comes along and it's bad again. Well we'll see, there is risk everywhere, even in the US, but I'm mostly just there for now. I trust India more than China.