Buying The Best Of PGJ

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Summary

  • Investing in China comes with major risks. China is known to be a market where "common prosperity" comes before shareholder returns.
  • That said, the economic outlook looks better in China than in developed economies at the moment, and equity valuations are below the 25-year average.
  • I'm personally not bullish on PGJ, but I'm bullish on a few individual stocks such as Tencent, Alibaba, and Baidu.

Chinese lantern dragon

real444/E+ via Getty Images

Investment Thesis

The past 18 months have been very tumultuous for Chinese equities. It all started with Beijing's crackdown on technology companies and more specifically on Alibaba (BABA) back in late 2020. The crackdown has been

This article was written by

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About me: Value-oriented investor, seeking low-risk investments with the potential to deliver high returns. I like to analyze commodities, ETFs, and cash-flow positive businesses that have a moat and growth opportunities.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BABA, BIDU, NPSNY, NAPRF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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