Strategies to profit from Chinese economic slump?

Hi,

What are some broad strategies to benefit from the marked decline in Chinese economy? With a long term value mindset.

How is this achievable with AUDs without having to predict exchange rates?

Thanks,

goponcho said:

Hi,

What are some broad strategies to benefit from the marked decline in Chinese economy? With a long term value mindset.

How is this achievable with AUDs without having to predict exchange rates?

Thanks,

Click to expand...

Short IO, CU, Coal sectors? bhp rio fmg, in fact any shortable stocks in the commodity sector! Short Kwi and AUDUSD or any ETF Chinese index funds. Shorters paradise currently and you get paid for holding as well. Or you could pairs trade correlated stocks? Or even bottom pick dead commodity sectors and just wait?

AverageJoe said:

Short IO, CU, Coal sectors? bhp rio fmg, in fact any shortable stocks in the commodity sector! Short Kwi and AUDUSD or any ETF Chinese index funds. Shorters paradise currently and you get paid for holding as well. Or you could pairs trade correlated stocks? Or even bottom pick dead commodity sectors and just wait?

Click to expand...

You also look for bear ETFs on what you mentioned.....

CanOz said:

You also look for bear ETFs on what you mentioned.....

Click to expand...

Late entries into the party is either going to continue to get bonuses or just get trampled by those leaving. One never knows until after the panic dies down. From current proactive Chinese Govt efforts, I suspect they still have a few more stimulus/confidence making bullets to fire at the charging bears. Some say their stock market intervention was the trigger point for the current panic selling together with Yellen's "inaction on rate" July minutes.

I just see the Chinese authorities shifting the typical punting public mind set from properties to stock markets, encouraging the mums and dads to continue the euphoria with no control to margin trading accounts explosion then gets panic attack with draconian decision making with impunity.

Just plain dumb authorities/regulators that never learned from previous pre-GFC collapsed in their stock market. I hope this Shmita cycle is not coming back to haunt us with the month of September the day of reckoning apparently!