This issue of Chinese Internet Weekly (NYSEARCA:FXI) (NYSEARCA:CQQQ) would be a pleasant read for shareholders of related technology companies. The Chinese stocks involving a plethora of business sectors from search engines, e-commerce, gaming, to live-streaming, saw a good ending (December) to 2019 and a great start to 2020. This follows a long period of anguish with media headlines rotating between trade war, the economic growth slowdown in China, potential delisting of U.S.-listed Chinese companies, and other bearish news spelling doom and gloom.
At the same time, it has been a difficult period for investors who lament they have not loaded up more prior to the recent run-up and those who missed the proverbial boat completely. A close friend of mine shared with me that a quote came to his mind as he was reading the comments from those who expressed doubts about any stocks Chinese, "It's essentially saying, I'm taking my ball and going home. But it’s important to remember that if you're not there, nobody misses you. US absence just means more opportunities for everyone else."
The quote came from a book titled The Future Is Asian, written by Parag Khanna, where the author implied the U.S. risk missing out on the opportunities from China’s growth that the Europeans are lapping up with glee. I agree with him that the concept derived from the message applies to investors who avoid putting their money on Chinese names. Incidentally, in a comment posted on my previous article, a reader encouraged others to read the book.
The Chinese Internet sector representative ETF, the KraneShares CSI China Internet ETF (NYSEARCA:KWEB), climbed 3.29 percent for the week. Strong gains were achieved on the first trading day of 2020 which observers generally attributed to the announcement by China's central bank
