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China’s Stock Market Is Bouncing Back. Don’t Take the Bait.


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China’s stock market is bouncing back after getting trounced for much of the year. Don’t be fooled into thinking it’s time to buy.

At first glance, it looks like it could be a prime buying opportunity. The iShares MSCI China exchange-traded fund (ticker: MCHI) has dropped more than 10% in 2021 amid concerns about the country’s tech crackdown, the implosion of real estate giant China Evergrande Group (3333.Hong Kong), and the slowing of its economy amid attempts to wipe out Covid-19. With the S&P 500 up more than 20% this...