50% off Premium Yearly
iShares Xinhua China 25 ETFFXICOMMENTJul 19, 2021Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
Of all his holdings, this one is the most contentious. Clients are deeply skeptical about China. Yes, there is debt, yes it is a Communist country, but look closer and see that China is moving in the right direction. Holds Chinese companies (60% of them banks) in Hong Kong. Since early 2016, Chinese banks are among the best-performing assets classes in the world. Doesn't see Chinese banks imploding.
His weighting in China is reasonably low. For the next 12-24 months, there is going to be a lot of back-and-forth between the US and China. It probably doesn’t put China in the best position from a negotiation point of view, given that they have such a large trade surplus with the US. He would be a little wary, but the China economy looks very strong right now. He would have a look at Tencent (TCEHY-5) instead, which he owns.
Likes the ASHR market. The question is whether the risks around the tech cold war with China is fully priced in. China relative to the rest of the world is pretty fair value. Plays China through KBA and nibbling away at it.