I’m pleased to see that I’m not the only person talking about China A shares offering good value to investors battered by volatile stockmarkets in the rest of the world, and emerging as an important opportunity for the long term. According to Livewire: “While much of the rest of the world is increasingly entrenched into bear market mode, Chinese equities are looking more and more interesting as China continues zigging while the rest of the world is zagging. Valuation-wise, China A-shares are looking cheap after a period of weakness. And this is actually a change from recent times where valuations got expensive after China managed to initially evade the virus but still benefit from global stimulus”.
And in there recent blog Why China equities warrant a look in, Van Eck argue that “A-share companies in the consumer, healthcare, and technology-related sectors, which source the bulk of their profits and revenues from the domestic market, look to be well placed to benefit from the economic expansion and government and central bank attempts to kick-start growth”.
A glance at recent valuations provided by Topdown Charts shows PE Ratios of China A Shares at all time lows (even when you exclude Banks - see black line) suggesting that China will attract more attention from institutional investors in the months ahead.
The information above is for general information only. It should not be taken as constituting professional advice. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique personal circumstances.