Mechelany Advisors'CHINA DEEP VALUE PORTFOLIO was launched on Jan 1, 2021 to capitalise on what Mechelany Advisors' sees as a MAJOR SECULAR ENTRY POINT in some of China's corporate giants. The portfolio is structured to generate 8 % gross dividend yield per annum and benefit from a unique potential for long term capital appreciation due to the exceptional value these stocks offer at the moment.
On March 18th and 19th, the US administration and the Chinese Government will hold high-level talks that will be crucial for the future of the US Chinese relationship going into the BIDEN Presidency.
Ever since his election, US President Joe Biden laid out the philosophy of his administration with regards to China, stating that the relationship should not be a confrontational one, but one of respectful competitors, while keeping a firm stand on issues such as Human Rights, Hong Kong’s autonomy, intellectual property and technology dependency.
The purpose of tomorrow’s meeting is not to come to specific agreements, but to allow both parties to expose their mutual concerns and path a way towards a more serene cooperation between the two countries.
Both sides recognise that former President Donald Trump’s confrontational attitude and the launch of a Trade War in February 2018 led to nothing but to negative frictions.
Despite the US tariffs imposed by the US on imports from China, the trade deficit between the two countries did not really change.
Likewise, the sanctions imposed in HuaWei, Tok Tok, Xiaomi and the 62 companies sanctionned by executive Orders in the last few months of the Trump Presidency did not lead to much.
Last week, a US Federal Court cancelled the sanctions on XIaomi while several weeks ago, the same Federal courts cancelled the forced sale of TikTok’s American operations.
But the previous administration forceful attitude led China to decide to go it alone strategically and reduce its dependancy on US technology, particularly in the field of semi-conductors, and to take a more assertive attitude in International and “domestic” affairs as testified by military development in the South China Sea and the political clampdown on Hong Kong.
Nevertheless America needs China and China needs America…
So, at tomorrow’s meeting, both sides will probably agree to disagree on certain matters of strategic importance for them but will also probably eliminate unnecessary friction points in their relationship.
Amongst those unnecessary friction points are the Sanctions on Chinese companies deemed to be linked with the Chinese military. They bring nothing and will not change the future of those mammoths companies that do not need the US.
On the other hand, maintaining them will entice the Chinese side to reduce access of US companies to ten Chinese markets, be it in finance, in industry or in consumer goods.
Until now, China has been extremely restrained in its retaliation process. China waited it out to see if Donald Trump would be re-elected or not, but now that a new administration is in place, they will consider that the refusal to remove those symbolic sanctions will open the way to balanced retaliations.
Mechelany Advisors CHINA DEEP VALUE PORTFOLIO
As our readers know, four companies out if the 10 we hold in our China deep value portfolio are under US sanctions, and these sanctions provide an extremely attractive entry point in terms of valuation:
We expect these sanction to be ultimately lifted, enabling US investors to re-invest into them.
Since the beginning of the year our Mechelany Advisors CHINA DEEP VALUE PORTFOLIO far outperformed every Chinese equity index.
As of the close of this morning, the portfolio up almost 15 % YEAR TO DATE
By comparison , the Chinese Equities Indexes are in the Red since the beginning of the year.
The lifting of these sanctions will give another boost to our portfolio and the window of opportunity to buy them on the cheap may well close soon.
It is not too late to invest in the EXANE CHINA DEEP VALUE Leveraged certificate locking in 12 % plus dividend yields and significant potential capital gains.
DISCLAIMER Mechelany Advisors FZ-LLC or www.mechelanyadvisors.com, is not a registered investment advisor, nor a capital management firm or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. Mechelany Advisors FZ-LLC operates as a private advisory and research company where we provide consulting services to pension funds, investments funds and private clients. Our analyses and conclusions are ours and they only clarify and highlight the investment rationale behind our own investment decisions. The analysts and employees or affiliates of Company may - and usually do - hold positions in the stocks or industries discussed here. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. You understand and acknowledge that there is a very high degree of risk involved in trading securities. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns. The indicators, strategies, columns, articles and all other features of Company’s products are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company’s website are for educational purposes only. Such examples are not solicitations of any order to buy or sell securities, commodities, investment products or engage into any kind of trading activities. Accordingly, you should not rely solely on the Information provided in making any investment decision. Rather, you should use the Information provided only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment. By navigating on our website or remaining on our subscription lists, you accept our terms and conditions and discharge us irrevocably form all responsibility.