Stockchase Opinions

John Hood China Technology Gugenheim CQQQ-N DON'T BUY Sep 27, 2021

No, investing in China and Chinese tech is not good now. The government has so much influence over markets with crackdowns on real estate and gambling stocks, and the country's stocks lack transparency. Everything is seen through a political lens. He avoids Chinese stocks, period.
$66.550

Stock price when the opinion was issued

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BUY

One of his big themes has been China. The conception is that the market opportunity is pretty big. As a piece of a portfolio, he sees no reason why you can’t have a piece of this.

DON'T BUY

Industry sectors in emerging markets are expensive, like the 0.7% MER on CQQQ. China is a big part of the EM index, and technology is a biggest part of that em index. So, here you're getting Alibab and Baidu for a fraction of the price. You're paying at least a half-point on the MER. He likes this space, but you can play Chinese tech stocks cheaper on the broader market.

COMMENT
Can you recommend an ETF that covers the Chinese Tech? - Listed in the US. The problem is that it is expensive. 75 bps that is high for an ETF. That is the name to play to have exposure to Chinese Tech companies.