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Home Business

Why Chinese stocks are so far out of favour

14 February 2025
in Business
Why Chinese stocks are so far out of favour
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Chinese stocks have been disappointing for investors, with the MSCI China index delivering a gross total return of 3.9% per year in sterling terms over the past decade. The market appears cheap, trading at ten times forecast earnings, but faces risks such as demographics and geopolitical tensions. Despite recent government efforts to boost growth, investors remain cautious, with three trusts in the China specialist sector offering distinct strategies for navigating the challenging market conditions.

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