In today's video I look at recent news affecting Chinese stocks and share three Chinese market ETFs investors should watch. Numerous technology companies in China are being probed for cybersecurity reviews. During the review period, new user registrations were suspended for DiDi Global (NYSE:DIDI) and Kanzhun (NASDAQ:BZ), causing stock prices to plummet. Below I share a few highlights from the video.
- At the moment, the cybersecurity reviews are only affecting a handful of public companies. Stock prices for companies currently not being targeted have also seen a downtrend, which could provide long-term investors with buying opportunities.
- As individual Chinese companies are being targeted for cybersecurity reviews, investors could look at ETFs to diversify into multiple Chinese holdings.
- As of July 7, 2021, Invesco Golden Dragon China ETF (NASDAQ:PGJ), KraneShares CSI China Internet ETF (NYSEMKT:KWEB), and iShares MSCI China ETF (NASDAQ:MCHI) have all returned over 80% in the past five years, even after a double-digit correction in prices.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of July 7, 2021. The video was published on July 7, 2021.