Photo: Vincent Yu/AP Images
The risk of a Chinese hard landing is still on many people’s minds.However, this isn’t keeping Doug Kass out of Chinese stocks.
He’s buying the Chinese ETF $FXI.
For Kass, this represents a turn in his attitude on the country in general and this ETF in particular. Back in February, he recommended that investors short $FXI. In August, he declared that “China is in for a crash landing.” In the past two weeks, Kass has changed his mind, writing “we can now scratch off a Chinese hard landing as a concern because the accumulated data are convincing.”
On Tuesday, Kass took to Twitter to announce his latest action:
For the second time in my investing life I am buying the China market (FXI). For an explanation I am now posting on RealMoneyPro. $FXI
— Douglas Kass (@DougKass) November 20, 2012
Since Kass’ buy, $FXI has already climbed. This morning on Twitter, Kass reaffirmed his bullish views:
— Douglas Kass (@DougKass) November 23, 2012
Investing in Chinese stocks isn’t exactly like investing in US stocks. As Gregory Harmon spells out, “Buying the FXI is not investing in China, it is investing in large cap state controlled entities in China.” Harmon goes on to point out that the Shanghai Composite has been in decline while $FXI has surged in the second half of the year.
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