Thesis

China’s market has become dislocated as investors retract capital due to fears of regulation in light of the US, China tensions. This presents an opportunity to buy undervalued, quality businesses with strengthing fundamentals and cashflow growth; with earnings season presenting a catalyst for investor reevaluation of the market. In addition, more favourable policy surrounding stimulus measures will aid investor confidence in the market’s stablisation and will actualise a deleveraging of businesses to a more robust state.

Due to the breakdown of correlation between US and China returns, investors can use China’s market for uncorrelated investment with US equities, minimising some portfolio volatility with correct position sizing.

Below Analysis Available on Request

• Inverted Skew, Implied Correlation and Other Volatility Dynamics

• Trend Reversion Indicated by Liquidity Compositional Shift from Short to Long Term Market Participants

• Market Efficiency Analysis through Pairwise-Correlations and Asset Returns Dispersion

Disclaimer

*** All opinions expressed are solely my own and do not express the views or opinions of any employer that I am affliated with. Nothing on this website should be taken as investment advice and you should do your own research before making any investment decisions. ***