Amid any market sell-off, investors naturally begin to wonder whether there’s value in share prices that suddenly are lower. Today, that means an increased focus on Chinese equities.
China’s stocks have been caught in a perfect storm. A regulatory crackdown has weakened the appeal of the technology companies that dominate Chinese indices. There are continuing tensions between the United States and the People’s Republic. There’s Beijing’s aim to be a zero-Covid country, which has resulted in strict local lockdowns. And the fallout from the crisis gripping the debt-laden Evergrande, once China’s top property developer, has provided a further challenge. The question is whether the bad news is already accounted for in beaten-up stock market valuations.
Like its peers, Fidelity China Special Situations has endured
