The Chinese equity markets have been under unprecedented pressure over the past few months amid increasing COVID-19 cases leading to strict lockdowns and lingering supply chain disruptions. After easing the lockdown restrictions some time ago, regulators are once again placing fresh COVID-19 alerts on specific cities and districts due to rising cases.
Yesterday, various Chinese stocks plunged on the Nasdaq and New York Stock Exchange as a part of a sharp selloff amid growing concerns about Fed’s aggressive interest rate hikes to bring down prices and a possible slowdown in the United States, the world’s largest economy. However, the current market dip creates an excellent opportunity to buy fundamentally sound stocks now trading at attractive valuations. Given the strong financials, healthy cash flows, and solid growth attributes, the quality Chinese stocks are well-positioned to weather current market uncertainties.
