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  • Writer's pictureIshfaaq Peerally

Buy Chinese Stocks?

🇨🇳 Everybody knows that stocks in the US $SPX500 are expensive but stocks in China look cheap with the MCHI ETF $MCHI in a bear market. Charlie Munger and Ray Dalio tell us that it is a very 𝙜𝙤𝙤𝙙 𝙞𝙙𝙚𝙖 𝙩𝙤 𝙞𝙣𝙫𝙚𝙨𝙩 𝙞𝙣 𝘾𝙝𝙞𝙣𝙖.

🏛️ According to Ray Dalio, 𝘾𝙝𝙞𝙣𝙖 𝙝𝙖𝙨 𝙩𝙬𝙤 𝙚𝙘𝙤𝙣𝙤𝙢𝙞𝙚𝙨: The State Capitalist economy and the Entrepreneurial Capitalist economy. In the State Capitalist economy, we have State-Owned companies such as China Mobile and the Chinese banks. These companies are usually safer and are currently very cheap.

💻 In the 𝙚𝙣𝙩𝙧𝙚𝙥𝙧𝙚𝙣𝙚𝙪𝙧𝙞𝙖𝙡 𝙘𝙖𝙥𝙞𝙩𝙖𝙡𝙞𝙨𝙩 𝙚𝙘𝙤𝙣𝙤𝙢𝙮, we have companies such as Alibaba $BABA , NIO $NIO and Qudian $QD . These stocks are normally volatile and are correlated with the NASDAQ $NSDQ100 since many are them are listed there.

These two economies rarely compete with each other. Qudian will never replace the banks and only act where their services are limited.

💰 It is riskier investing in China than investing in the US but it can be worth it since China is growing faster than the US and stocks are much cheaper there. To quote Ray Dalio, "𝙉𝙤𝙩 𝙞𝙣𝙫𝙚𝙨𝙩𝙞𝙣𝙜 𝙞𝙣 𝘾𝙝𝙞𝙣𝙖 𝙞𝙨 𝙫𝙚𝙧𝙮 𝙧𝙞𝙨𝙠𝙮." But always make sure to look at fundamentals.

Watch the full video on YouTube:

Full China Analysis:


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