Everybody I talk to has a bad story on China.
Source: Stock Charts
The chart however suggests that the Chinese stock market is ready to go up. When a stock market is deeply oversold and nobody wants to invest anymore most likely a lot of money can be made!
Bears are fascinated with China & yet the market isn’t falling…
When discussing risks in the global economy and macro investments, majority of the fund managers agree that China is the biggest worry and one majority lose sleep over. The bearishness has actually been intensifying over the last few years, and yet the Chinese stock market has actually failed to fall lower. Volatility has completely died out in 2014 and it seems a big move is coming soon.
The truth is, Chinese mainland stock market is incredibly oversold. After peaking in 2007 at around 6000 points, the index finds itself 66% lower 7 long years later. Furthermore, since 2009, Shanghai Composite has failed to staged a multi-quarter rally. Constantly bombard by bad news and a sideways trending market, investors have surely forgotten that Chinese stocks can actually go up, too.