almost 3 years ago • 1 min
Chinese stocks have done little but drop since the Year of the Ox began on February 12th, making them cheap by historical standards.
The declines even prompted its so-called “national team” of state-backed funds to step in to shore up the market on Tuesday – a move which failed to keep stocks in the green for long.
The chart shows the price-to-earnings valuation of China’s CSI 300 Index divided by the valuation of the S&P 500 Index of US stocks.
The Chinese market is nearly 20% cheaper than its 10-year average (the horizontal pink line) when compared to US stocks. Will this prove an interesting opportunity to pick up a bargain, or will the Year of the Ox continue to disappoint China’s bulls?
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.