Well China's economic issue is an unique one. Its recession is really a result of slowdown of demand for its exports of goods and services due to the supply-chain diversification and the exiting of foreign investments from China. Its productivity is still there so there is no issue of inflation so hopefully with the stimulus measures, it will result in an increase in business investments by local domestic businesses to fill in the void left by the foreign businesses that have left China that will hopefully create more jobs and at the same time encourage spending by the Chinese people to create the demand for its goods and services that it's not exporting once people got jobs. Provided that it's well-designed and well-regulated, it should have some long-lasting effects. Regulations will be key here.
These are unsustainable returns. This amateur retail's guess is, over the next 10 yrs, the returns of these FAANG stocks will be a lot less.
Like the US in the 70s & 80s, a CAGR of 1.3% return is too low? Perhaps, eventually, investors will recognize value and re-value. CCP and planned economy are two strikes against China. On the other hand, the Chinese people are survivors and are very resourceful. Capitalism is in their blood and 5000 years under constant dictatorships trained them how to steer around CCP and central planning.
that's a very uneducated statement. china gdp has almost doubled since xi came to power, from 9.5 trillion in 2013 to 17 trillion last year. gdp growth rate is unstable, particularly during the covid, that's only thing the media is bashing. and china is still in reconstruction and new deal era, spent most of the money in infrastructures. of course, in present days infrastructures go beyond roads and ports, and into telecoms, chips, green energies, space programs. and with all these industrial heavy assets, profit margins by definition are very slim. if you are merely a financial investor and want 18% per annum return, china is not the place to be, high tech or not.
I believe the last few rallies based on "whisper" stimulus was 50-60% on the China A shares (ASHR etf in the US) so there's probably another 20-30% left. Probably the same with the KWEB etf (mainly US listed China large cap tech). Last week on CNBC Stephen Roach said the real problem in China could be the specter of Japan-ification of China if they don't put in real reforms and get away from the export driven economy & reliance on the real estate sector to provide wealth for its citizens.
OOP! China A50 hit price limits of 10%. Quote: PRESCRIBED PRICE LIMIT price limits of 10% and 15% with cooling off period of 5 minutes. Thereafter, no price limits for the rest of the day.