Earlier this year, I shared that we were buying Chinese related ETFs namely MAFANG & allocating funds to Greater China Fund.
Back then nobody wanted to touch China with a 12 foot pole. We did. We bought. Many investors bought along.
Today entire world is after China.
And we’re already 40% up in just 7 months!!!
And more coming!
Today alone the Beijing stock exchange 50 index was 22% up. Entire index up 22%. IN. A. SINGLE DAY.
So what was happening.
In February, every hedge fund was closing it’s shops having China exposure & selling like the 150cr population country is going to close down & die down.
We saw it’s market cap to gdp was trading around 50% only. Compared to 200% for USA.
What a stellar opportunity to buy Chinese stocks when they were available at straight 50% discount.
I knew that things are not going to be the same. Afterall, there are 1.5 billion stomachs to be fed.
China is too big to fall.
We bought in when nobody wanted to. Some even questioned what made us buy China (India’s enemy nation). Remember, my friend, there’s no friends & enemies in stock market. If you get opportunity, you make money. In a legit way. And that’s what we did.
Last week Chinese government announced series of rate cuts, home buying subsidies, multiple stimulas plans including buying bonds & injecting liquidity worth hundreds of billions of $.
Today entire world is queuing up madly to buy China.
Most ETFs across the world are locked in upper circuit. With no seller to sell.
While investors who bought on my advice are laughing their way to the banks!
