I haven’t read anything positive on Chinese stocks or the Chinese economy in ages. My friend Brendan Ahearn of the China-focused ETF company Kraneshares notes that there are a handful of potential catalysts for China bulls to latch onto in the near future:
• President Xi’s US visit which includes the Baidu, Alibaba and Tencent CEOs attending a Seattle roundtable with notable US CEOs including Mary Barra, John Chambers, Jeff Bezos, Tim Cook and Warren Buffett
• 5th Plenum and drafting of the 13th Five Year Plan in October
• Singles Day (11/11) the world’s largest e-commerce sales event
• MSCI’s inclusion of sixteen US listed Chinese companies December 1st
Josh here – It’s true that the second and third items on this list could go either way, a Singles Day sales disappointment or a regressive Plenum session, but given how bearish sentiment has gotten, maybe disappointment is already the expectation.