From March 14th to 18th, Chinese ADRs had a strong rebound following recent heavy losses.
By the close on Friday, March 18, the Nasdaq Golden Dragon China Index stood about 3.4% higher than it did two weeks earlier, while Hong Kong’s Hang Seng had lost 2.3% over the same period, Refinitiv data shows.
Numerous investors argue there is no fundamental problem with investing in China and the long pullback has made some stocks attractive.
“We strongly refute the notion that ‘China is uninvestible,’” said Justin Thomson, chief investment officer and head of international equity atT. Rowe Price GroupInc.“It would appear that the market is pricing in extremely negative sentiment while ignoring potential positives such as extremely cheap valuations and the opportunity for further easing in the economy.”
Likewise, Conrad Saldanha, senior portfolio manager on the emerging-market equity team at Neuberger Berman Group LLC, said a broad-brushed dismissal of Chinese stocks would be wrong and he still saw investment opportunities in some internet companies, as well as hardware and consumer businesses.
