China Market Needs to Hit a Reset Button
Market needs an extreme release of stress to find the bottom
New to Daily Reflection on China? Please read this.
Subscribe to receive timely updates from China on the ground.
(1) China is having a stock market crisis.
(2) But there is no Real Estate crisis, Financial crisis nor Economic crisis of any kind in China. Not right now.
(3) Fundamentals-wise, the economic recovery is on track.
(4) Sentiment-wise, investors are eager to take risk off the table, before the October holidays and the Party Congress.
(5) The market needs to snap out of panic mode before it can re-evaluate the fundamentals.
(6) Signs to look for in a sentiment turnaround.
(7) Chinese banks will likely lead us out of this downturn.
Below is what we wrote to our clients in the September monthly report. By the way, MegaTrust Investments is a boutique China manager specializing in A-shares, with over 14 years of track record in the Yangtze Funds (for Professional Investors only).
Keep reading with a 7-day free trial
Subscribe to Daily Reflection on China to keep reading this post and get 7 days of free access to the full post archives.