Chinese stocks may be facing caution from investors, but asset manager Jason Hsu sees a silver lining in the market. Hsu, the chairman and chief investment officer of Rayliant Global Advisors, believes that Chinese stocks are currently trading at their cheapest, presenting a unique opportunity for investors.
In an interview with CNBC Pro on March 13, Hsu emphasized the potential for growth in the Chinese market despite the current uncertainties surrounding the economy. He noted that while there is a risk involved, the discounted prices of Chinese stocks make them attractive investments within a diversified portfolio.
Hsu recommended that investors allocate around 7% to 8% of their portfolio to Chinese stocks, with the remaining funds going towards U.S. stocks, developed markets like Japan, and other emerging markets. He highlighted state-owned food and beverage company Kweichow Moutai as a good short-term play, citing its strong brand premium and growth potential in the luxury alcohol market.
For a longer-term investment, Hsu pointed to electric vehicle maker BYD, which has been gaining traction in the industry with its innovative products and competitive pricing. Despite facing regulatory challenges in the U.S. and Europe, Hsu sees BYD as a promising investment opportunity, drawing parallels to the success story of Japanese automaker Toyota.
With Chinese stocks showing signs of recovery, Hsu’s insights offer a fresh perspective on navigating the market and seizing opportunities for growth. As the Chinese economy continues to evolve, investors may find value in exploring these potential investment options to capitalize on the market’s potential upside.
