Long CHINDIA!

Acorn implementation report, August 29th, 2023.

Midjourney AI sees the Chinese Panda steal some stripes from the Bengal Tiger - Is this a sign that the 🐿️ is on to something?

Summary

• In a new Acorn position, the 🐿️ finances a new long (stock plus call) position in China equities FXI 0.00%↑ with a tactical short position (stock plus put butterfly) in Indian equities INDA 0.00%↑.

Long CHINDIA!

In Monday’s note, I outlined my rationale for calling time on the outperformance of Indian equities versus China equities. For those that missed it, you can find it here 👇:

Monday morning in Shanghai saw the implementation of a number of tweaks to the capital markets rules (announced Sunday) that have seen on- and offshore China equities jump in initial trading. Even the property stocks were up! Some of these gains have been faded but the market retains a well ‘bid’ tone.