DIARY OF A PRIVATE INVESTOR ·
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Is China a value trap?

CHINA shares have been described by some experts as value traps, even as others say that they are a buying opportunity of a lifetime.

Unquestionably, China shares are ostensibly cheap. But are they cheap enough for us to brush aside the obvious risks and take the plunge now? To put it mildly, there are risks aplenty.

For a start, it is not easy to ignore global macroeconomic factors and geopolitical tensions. For instance, the US Federal Reserve’s monetary policy decisions loom large. A rate cut by the Fed, should it happen, could have a significant impact on the attractiveness of the US dollar and its assets. It could also affect international investments, including those in China.

Additionally,...

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