During the "Golden Week" when the Chinese A-share market was closed, overseas Chinese stocks and funds experienced notable gains. The Nasdaq Golden Dragon China Index rose 3.1%, reaching its highest level since February 2, 2023, with a weekly gain of 11.9%.
All hope is not lost for Chinese large-caps. Through the pessimism, the fundamental value here is hard to ignore. Also keep an eye out for technical support in the near-term.
Shares in Chinese companies have seen a reversal in fortunes after a few rough years, and some China-focused exchange-traded funds (ETFs) are now outperforming the S&P 500 this year.