Chinese Stock Indicator With 100% Success Rate Is Flashing Buy
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With sentiment toward China’s economy and markets as depressed as they are now, perhaps it pays to be a contrarian. And at least according to one measure, there’s a reason for optimism: The risk premium of Chinese stocks has reached a level that historically leads to spectacular returns.
China’s stock market is sinking to the bottom of the global ranking in the first week of 2024 trading. From its peak in 2021, the CSI 300 Index has lost about 42%, comparable to the drawdown during the burst of the stock bubble in 2015.