China stocks are having the best showing since 2006
The MSCI China Index has jumped 14% year to date
China’s stock markets are booming this year on the back of mainland investors, and there are signs international buyers will join the party, reports Bloomberg.
Recently, overseas funds have been skeptical of mainland markets, pulling US$2 billion from exchange traded funds, says Mark Tinker, head of Axa Framlington in Hong Kong. But he adds that stability and strong corporate fundamentals should restore confidence.
Still, many will probably wait for a healthy selloff. Money manager at Mathews Asia in San Francisco, Sherwood Zhang, reminds us that “[v]olatility is rarely absent from the Chinese stock market.”