Bet On Surging China Stocks With These Leveraged ETFs
Zacks Investment Research | Mar 04, 2019 11:55PM ET
Chinese stocks have been skyrocketing this year, rising to a nine-month high. Logging in the biggest monthly gain since April 2015 in February, the Shanghai Composite Index reclaimed its above 3,000 level on Mar 4 for the first time since June 2018. With the current rally, the index is up about 23% since its Jan 3 low and added nearly $1.5 trillion in value to China’s stock market.
Below, we have highlighted some reasons for the outperformance that will likely continue in the near term.
Potential Trade Deal
The optimism over the trade deal with the United States has been the biggest catalyst behind the rally. Washington and Beijing are close to striking a deal as early as this month to end the nearly one-year tariff war. According to the Bloomberg News and The Wall Street Journal, China offered to ease tariffs and other restrictions on U.S. farm, chemical, auto and other products. Meanwhile, Washington is considering removing most, if not all, sanctions on Chinese imports placed last year (read: Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.