Chinese Market Expert: 'It Doesn't Get Better Than Right Now'

U.S.-listed Chinese stocks like Alibaba Group Holding Ltd BABA, JD.Com Inc(ADR) JD and Baidu Inc (ADR) BIDU have been hit hard since Donald Trump was elected the next U.S. president on Tuesday. Trump has been clear about his intentions to take a tough stance on international trading partners, often specifically mentioning China.

U.S. Investors Have China All Wrong

Chinese market expert and CEO of Marco Polo Pure Asset Management Aaron Boesky joined PreMarket Prep on Wednesday to explain why U.S. investors have the China story completely wrong. U.S. investors have been bombarded with headlines about a breakdown of China’s economy, but Boesky sees a huge buying opportunity.

After an initial post-election selloff, the Hang Seng and Shanghai Composite have bounced back and are now in positive territory since Election Day.

'Oversold' China

“The Chinese stock market is basically oversold,” Boesky explained. “Every time we see bad news, we’re not really seeing any downward pressure. It’s been level to up for almost six months straight on very low volatility, just building a nice, steady base at about 3,000.”

Boesky added that it’s unfortunate that Americans don’t typically get accurate media coverage when it comes to the health of the Chinese economy.

“It’s just so off-base. It does begin to smack of Western media outlets just printing ‘the sky is falling,’ and it creates a lot of clicks. To say things are running smooth over here [in China] doesn’t really generate a lot of interest in the media, and the fact that people know so little about what’s going on over here makes them very sensitive to these media stories,” Boesky said.

He pointed out that the real economic numbers in China don’t match up with the Western media narrative that the country is struggling.

“We have an economy in China right now where we’re essentially at full employment. The number one thing we hear is that it’s hard to get employees. Wages, incomes are going up double digits every year for 10 years, inflation is under 2 percent [...]house prices are up 30 percent over the past two years,” Boesky told Benzinga.

Impact Under Trump

While the ultimate impact of a Trump presidency remains to be seen, Boesky concluded that U.S. investors need to understand that, despite what they have read in the media, the Chinese economy is currently firing on all cylinders.

“Anyone who can understand basic economics can understand that it doesn’t get much better than what we’re in right now over here,” he said.

Of course there’s one final number that any investor can appreciate: the iShares FTSE/Xinhua China 25 Index (ETF) FXI is up 3.1 percent in 2016.

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Disclosure: the author is long BABA.