To The Moon

China markets have rebounded strongly and the upward momentum is continuing. We thought that it would be good to do an assessment of how far some of the stocks have ran and which are the leaders investors can look at in order to ride this recovery. Let's start with the ETFs first. Since it is a broad market recovery, the indices should run up and provide the easiest way for investors to invest in China. KraneShares CSI China Internet ETF (KWEB) has been the best performer with a 82% gain (all gains henceforth are measured from 31 Oct 2022.) Second is CSOP Hang Seng TECH Index ETF (3033) with 60% and third is Invesco China Technology ETF (CQQQ) with 51%. The broader indices were not up that as much: iShares Core MSCI China ETF (2801) was up 42%, Tracker Fund of Hong Kong (2800) was up 37% and iShares Core CSI 300 ETF (2846) was up 18% only. So China tech has been leading the recovery. It is not surprising as it was not only benefitting from the reopening, but the regulatory pressures have gone away too. The heavyweights Tencent and Alibaba have outperformed MSCI China with 73% and 74% returns respectively. The best performer among the KWEB holdings was Dada Nexus (DADA) - a retail delivery platform. It was up 302%. The next two outperformers were Bilibili (BILI) and iQIYI (IQ), which were up 203% and 197% respectively. BILI is a live streaming platform while iQIYI is the Netflix in China. Besides tech, travel-related and retail stocks were touted as beneficiaries of China's reopening. Here are some outperformers: - MGM China (2282) - casino +246% - Wynn Macau (1128) - casino +225% - Pop Mart (9992) - retail +146% - Miniso (MNSO) - retail +146% - Sands China (1928) - casino +117% - Haidilao (6862) - restaurant +103% - Jiumaojiu (9922) - restaurant +86% - Trip.com (TCOM) - online travel agency +66% - China Tourism Group Duty Free (1880) - duty free retail +64% - Travelsky (696) - aviation travel IT system +50% - Tongcheng (780) - online travel agency +50% Even the property sector which was at the brink of collapse has now been revived as the government has thrown in support measures. Stocks like Country Garden (2007), Longfor (960) and Jinmao were up 179%, 169% and 75% respectively. But note that some remained dead like Evergrande and Sunac. So those that managed to recover are likely survivors. Likewise for the education stocks, they rebounded strongly in this recovery too: - Gaotu +382% - 17 Education +198% - TAL Education +111% - New Oriental Edu & Tech +63% The China's policy stance has taken a 180 degree from the past two years (lifting of Covid zero, ending tech and property regulations). The policy tailwind should push the stocks higher. Not too late to pick up growth stocks for the long-term or ledge on some of these leaders' momentum for short-term trades.