Why Some Investors Are Betting on China’s Recovery but Avoiding Chinese Shares

Foreign luxury-goods makers are among those getting a boost from the country’s reopening

Luxury conglomerate LVMH Moët Hennessy Louis Vuitton is one of the top picks of international investors betting on China’s recovery. Photo: Qilai Shen/Bloomberg News

Global investors wanting to profit from China’s economic recovery are increasingly turning to companies in Paris, Las Vegas and beyond.

They are loading up on shares of European, American and Japanese companies instead of Chinese stocks, as high geopolitical tensions between Beijing and Washington have made it unpalatable for some international money managers to invest in Chinese companies.  

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