The Chinese authorities continue to tighten the regulatory framework in every sector. This week was the turn of gaming sector. This means that right now the safest way to look for opportunities in China, is only in the sectors from which this effort has already begun and which are at extremely low levels.
There is no doubt that there are colossal Chinese companies that trade with a high discount. Even better, these opportunities are found in the relevant ETFs which greatly reduce the risk of the individual company and which exist in both the XSpot Growth portfolio and the XSpot Growth ESG.
This is the reason why these two portfolios have managed to move particularly well in recent days, as China has significantly higher returns than the US. Over the past 30 days, Chinese stocks have outperformed.
Although China remains a huge economic power and an investor can find significant investment opportunities, the truth is that it creates uncertainty problems for large investors. In general, one of the biggest fears of investors is when there is no stability in a country in which they invest.
Under these circumstances, many have turned their attention to India, which has highly competitive and innovative companies in every sector, with better valuations and generally much higher growth margins than China. And most importantly, with political and economic stability. Over the past six months, India has been moving steadily higher than both China and Brazil.