The recent jump in the Chinese stock market is the direct result of the Chinese Communist Party’s recently announced stimulus package.
The gains have attracted the attention of Chinese day traders and speculators, as well as those in the West. But—as is often the case with China’s economic moves—there’s still a lot of uncertainty here, as the Chinese government has given few details on what, exactly, it will do. That lack of detail caused a reversal late last week that has dented, but not shattered, the bullish view.
So how do us non-day traders profit from this situation? The obvious way is to buy Chinese stocks—but there’s a big risk here, since foreigners can’t do this directly.
There are ways around this, such as…
This post originally appeared at Contrarian Outlook.