what a difference a long weekend can
make since china's new year holiday
marked the turning point for assets from
oil stocks what might the more global
easter break due to sentiment investors
can only hope since mid-february and
that china break chance of mostly
pointed upwards but the mood has been
less one a conviction or even relief
than a feeling that what went down we'll
probably go up strategists associate a
general have turned it risk
uncomfortably on nowhere is that clearer
than an international sentiment towards
China take the hang seng china
enterprises index hong kong-listed
chinese stocks in other words if you
compare the 10 worst performers before
februari 11th with the 10 best
performers since that point you'll find
many are the same names on both lists
that does suggest more short-covering
than any willingness to bet on specific
companies or even sectors for
outperformance the strength of bearish
views on China especially among Western
investors show why fear is still beating
conviction but macro bets on a weaker
rim and B have been one of the most
crowded and most painful trades of the
first quarter perhaps refreshed
investors next week might be ready to
think again okay strong bull calls
involving China are very unlikely but
there are tactical reasons to think the
gains can be extended not least the
greater waiting to be given to Chinese a
dr's the shares of us-listed chinese
groups in msci indices these are due at
the end of May now changes have already
added the likes of Alibaba by doing way
board to the msci universe this is
followed by trillions of dollars but
there are further shifts do after those
China's wait in the benchmark emerging
markets index will rise by another two
percentage points to about twenty-six
percent according to Goldman Sachs it's
easier to be positive on China's
Internet giant's admittedly than other
sectors and Alibaba baidu and web or
have gained between 29 and fifty-four
percent since the mid-february trough
performances that will put all three in
the top five of the HS CEI over that
time perhaps some investors really will
use this holiday
to come up with other China related
ideas the msci move and the change it
forces on investors just another reason
why markets can't ignore China even if
they wish they could