China has underperformed a falling market over the last 2 years and has been one of the worst sector to be in. Covid, the war in Ukraine and global logistic have played a part. But as the worlds markets fall and continue to look vulnerable to inflation risks and the risk of recession, China may be a safer bet.
IZZ the China large Cap fund has underperformed VGS by almost 40% since the middle of 2020. Have a look at the holding in the table below. There are a lot of good companies in there that are not going away.
The Global share market, I'm using VGS as a proxy, has a PE of 17x, well down from 4 months ago when it was about 23 but still quite a bit higher than the Vanguard Asia ex japan fund VAE at 12x and the Blackrock China fund IZZ at 11x.
The ASIA technology fund is on a PE of 16x which compares to TECH with a PE of 30.6x. That's quite a gap.
Here is a link to a VanEck article on China from a few weeks ago.
IZZ - China Large Cap Fund
