Preface

A little more than a year ago, we wrote “China at the Crossroads” detailing the decisions China would have to make in order for Chinese stocks to ever go up again…

The crisis has built a Great Wall of Worry in their asset prices, but could we be rounding the corner to “Bad News is Good News” in China?

It is not going to be smooth sailing from here…the reaction to the NDRC shows that investors are not ready to trust China (and for good reason). They need to see policymakers deliver, and we’re laying out what we need that to look like in order to stay more than just tactically bullish.

Because everything in China has been so bleak and there have been so many false dawns, investor sentiment and positioning is extremely jumpy. To climb the wall of worry, you’ve likely got to be comfortably numb to volatility.

In the wake of the first drawdown of this large rally, we’re updating you on our longer term views for China and our allocation to it. Is it only a fantasy or will the Chinese policy response help you to carry the stone (a long china position)¹?

Let’s explore what it’ll take to climb The Wall in our annual China Macro update. Chartbook download below the paywall with 3 new baskets & updates to our current trades!