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China is reportedly weighing taking on $1.4 trillion in extra debt to stimulate the Chinese economy with the fiscal package expected to be expanded if former President Donald Trump wins the US election, according to a report from Reuters. The CSI 300 Index (000300.SS) has been trading higher amid the Chinese government's ongoing economic stimulus efforts. CVA Greater China Growth ETF portfolio manager Ben Harburg joins Wealth! Host Brad Smith to discuss how investors can position their portfolio to benefit from the potential fiscal package.
“There are two catalyzing events that we can look forward to in the very immediate future that would affect Chinese equity markets significantly,” Harburg says, naming the upcoming National Party Congress (NPC) meeting set for Nov. 4 to Nov. 8 and the US presidential election.
“Our view is that now is a good time to enter the market for two reasons,” he adds, highlighting China’s ongoing stimulus efforts and a possible second term for former US President Donald Trump.
For more on how the portfolio manager is investing in the Chinese market amid ongoing stimulus efforts from the Chinese government, watch the video above.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
This post was written by Naomi Buchanan.