For whatever reason, there’s practically zero talk these days about the big rally that’s happened in Chinese stocks.
But Shanghai was up another 0.7% last night, hitting levels not seen since last November.
Part of the reason, probably, is that there’s only so much oxygen to go around, and people are a bit pre-occupied with government shutdowns, nuclear plants, and civil wars. Yet at one point, there was a interesting in this market as a possible leading indicator for the US.
Perhaps the fact that the US market doesn’t need much analysis right now — it just seems to go up — has taken that aspect.
Still, it is interesting that analysts have a) been more vocally bullish on Shanghai, and b) calling for the end of the PBOC tightening cycle, so at least on the street there are people getting excited again about this market.
Here’s the FXI ETF.