U.S. investors have lost a lot of money betting on the “China Miracle” since the market peaked in the fall of 2008.
But after more than five years of suffering disappointingly poor returns, the Chinese stock market just might be making a comeback.
Over the past three months, the iShares China Large Cap (FXI) — the major Chinese ETF that tracks an index of 25 Chinese large-cap stocks — has soared 15.53%. That makes the Chinese stock market the single-best-performing stock market over that time period among the 46 that I track at my firm, Global Guru Capital.
Dig a bit deeper, and you’ll find that the Chinese technology sector — and within that, the Internet sector — has shown even more strength than the overall Chinese market.
That’s why the renewed focus on Chinese Internet stocks — thanks to the upcoming listing of Chinese e-commerce giant Alibaba — could make Chinese Internet stocks one of the hottest sectors in the coming months.
Read more about Alibaba’s IPO and its potential effects on the global market at Eagle Daily Investor.