Chinese Stocks Look Historically Cheap After Recent Losses

Chinese Stocks Look Historically Cheap After Recent Losses
Andrew Rummer

almost 3 years ago1 min

Mentioned in story

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? 

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