Image: Large cap Chinese equities are back to levels first reached in 2005, almost two decades ago.
Things have been so bad in Chinese equities that China’s largest broker has even taken steps to curb short sales. For the past 52 weeks, Alibaba’s shares have fallen more than 41%, Baidu’s shares have dropped more 22%, JD.com’s shares are off more than 63%, Bilibili’s shares are down more than 65%, while Tencent Holdings has fallen more than 30%. Though the steep declines in shares of Chinese equities may attract some bottom fishing, we’re not interested in any Chinese exposure at this time. We continue to like ideas in the newsletter portfolios.
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