Some experts are increasing their exposure to Chinese stocks as they bet on an economic rebound after positive news out of China, which is lifting coronaviruses restrictions in Shanghai.
One expert says there are signs that investors are increasing their exposure to China.
Global markets are getting a boost from China's roll back of its Covid-19 lock down in Shanghai.
While China had a dramatic negative impact on economic activity, analysts at Goldman Sachs think there will be a rebound in June and July.
The reopening is expected to ease global supply chain delays, but experts warn that it will be some time before economic activity bounces back fully.
There are signs that investors are increasing their exposure to China again, as the Chinese stock market's valuations have fallen to more attractive levels.
In the last month, shares of Chinese e- commerce giants have improved, and should rebound further as they benefit from resilient consumer spending.
Wind, solar and electric-vehicle companies look primed for long-term growth despite seeing a growth stock correction this year, and he has his eye on the likes of BYD and Caterpillar.
The Chinese economy's longer-term issues remain unchanged despite the positive reopening news. They say that coronaviruses will remain a threat until policymakers feel comfortable moving away from the covid zero policy. According to Goldman, China is under pressure as globalization slows or reverses. Property investment in China is in the early stages of a multi-decade decline as urban population growth slows and speculative activity dwindles.
The Wall Street Journal reported earlier this week that Chinese regulators will end a years-long probe into ride-sharing giant Didi and lift a ban on new users. One could argue that the worst is over based on the government's rhetoric. He said that he is worried about U.S. regulation of Chinese tech companies. Chinese companies could be a big beneficiary of the U.S. giving less access to U.S. technologies.
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