The reopening in China was the trade of Nov-Jan but it's stumbling today with the MCHI China ETF down 3.4% today, the KWEB China tech ETF down 5.0% and BABA down 5.8%.
Naturally, it comes after Barron's put investing in China on the cover of today's edition.
By any metric, it's already been a remarkable rally in Chinese stocks and the reopening story is now well known. There's a playbook in following the US reopening but there's a critical difference in that the largese of the Chinese government came nowhere near matching US or other western subsidies.
Looking at that chart, today's drop is still just a blip but with month-end looming and major questions about growth and central banks, there's scope for a retracement here. That would be entirely healthy and set the stage for some out-performance later.
