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Trading China's policy train

Amid uncertainty, the optimal choice at this juncture is to get onboard with the official reform agenda and go along for the ride

Published Tue, Sep 28, 2021 · 09:50 PM

INVESTORS in China equities may feel like they are standing in front of a train wreck. Over the past 12 months, policy intervention has left equity sectors in partial or complete disarray. Education, gaming and property stocks have borne the brunt of this. And policy intervention is far from over, suggesting ongoing uncertainty as to when and where it might strike next.

But, it does not have to be like this; there is an easier way.

For smart, nimble investors, the more rewarding strategy by far is to hop on the policy train and ride alongside the regulators in their five-year journey (per the latest plan from the State Council) towards "common prosperity".