In my newsletter titled "Will it finally be the year of the dragon?" I explained that at the end of September, China's central bank (the People’s Bank of China) unveiled its biggest stimulus package since the pandemic in a bid to combat deflation and drive economic growth. Chinese stocks exploded higher as shown by the chart below, which is an updated version of the one included in the aforementioned newsletter.
In the same newsletter I highlighted how one investment bank believed there was another 10% upside for the CSI 300 Index in the short term. Funnily enough, the CSI 300 rallied another 8% the very next day. Nonetheless, there will be investors who will still want to gain exposure to the new "China stimulus trade".
One obvious way is to invest in one of the 10 unit trusts within the China/Greater China unit trust sector.
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