Wood Have Should Have
Of all the financial gurus currently preaching risk-off China, camera-friendly Catherine Wood of Ark Investments gets the most financial show airplay. Her buzzwords are everyone's "regulatory zeal" and "delta variant concerns".
Dare we remind of Buffet's edict to "buy when others are fearful"? Perhaps sudden regulatory crackdowns invalidate that timeless advice. But we should report that Ark has quietly started buying depository receipts or JD.com.
"There's a serious misalignment between how the West views Chinese markets and what's really there," says Edward Lehman. "The entire focus is on U.S. listed tech giants, and the Hanseng. Meanwhile, mainland China stocks are the second largest equities market, and the most liquid. Granted the SSE hasn't seen the melt up that the S&P 500 has, but neither is it driven by policy specifically aimed at increasing its value. Institutional investors looking for uncorrelated equities would be wise to look a bit deeper than the headlines."