Is Now The Time To Buy China?
| May 12, 2014 12:07AM ET
Below is a look at how Chinese assets are performing. There has been much speculation that China's banking system is in a state of disarray, and its economy may be undergoing a collapse of sorts.
The bar chart shows the Shanghai Index Class A -- owned by mainland Chinese investors -- while Class B, the downward sloping line chart, reflects the performance of Class B shares that are available to foreign investors. The black line near the top shows the performance of USD/CNY (US dollar vs. Chinese yuan).
Clearly, we are seeing all Chinese assets falling. The shares market, however, shows a slight double bottom though, in which the second bottom is a bit higher than the first. Does this suggest a potential near-term bottom that may offer a favorable reward/risk setup for traders?
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